Dollar Trading Mixed As Investors Focus On Washington

The dollar is turning in a mixed performance against its major rivals Monday afternoon. The buck is up slightly against the Japanese Yen, but is down against the Euro and the British pound.

The lack of U.S. economic data is keeping some investors on the sidelines at the start of the new trading week. However, the main focus among investors is the standoff in Washington on the third day of the government shutdown.

The shutdown could prove short-lived, as the Senate has reportedly reached an agreement this afternoon to vote on a short-term spending bill which would provide funding through February 8.

Senate Republicans have assured Democrats that they will open a debate on immigration in return for their assistance in passing the spending bill.

Meanwhile, Germany’s Social Democrats voted over the weekend to enter into coalition talks with Chancellor Angela Merkel’s government, helping end months of political uncertainty in Europe’s largest economy.

The dollar has slipped to around $1.2250 Monday afternoon, from an early high of $1.2213.

The buck has dropped to over an 18-month low of $1.3958 against the pound sterling this afternoon, from an early high of $1.3856.

British households’ current financial pressures intensified at the sharpest pace in four months in January, results of a survey by IHS Markit and market research company Ipsos Mori revealed Monday. The seasonally adjusted Household Finance Index, of HFI, dropped 43.0 in January from 43.7 in December.

The greenback has climbed to around Y111.075 against the Japanese Yen this afternoon, from an early low of Y110.589.

The material has been provided by InstaForex Company – www.instaforex.com