11 Oct 2013
Session Recap: To deal or not to deal; USD/JPY joins the party
FXstreet.com (San Francisco) - Today's party began with the GOP idea to propose a short-term debt limit on Thursday and concluded with fireworks in stocks and the USD/JPY. Wall Street performed its best day in 2013 and the USD/JPY recovered the 98.00 area.
The market just forgot that the jobless claims and Canadian housing price indexes showed weaker than expected numbers. The Dow, S&P 500 and Nasdaq posted daily gains above 2% and erased weekly losses.
The US Dollar advanced for third day against the Japanese Yen and after rising around 170 pips from Tuesday's low at 96.55, the USD/JPY is now trading at 98.15. The pair is "still well bid and looking for a test of 98.60 100 DMA," commented FXstreet.com's Valeria Bednarik in a recent report.
The EUR/USD traded mostly sideways in the day, with the pair moving in between 1.3515 and 1.3540 the last part of the session. The Euro to Dollar exchange rate is now at 1.3520 and it's maintaining the neutral tone.
The GBP/USD managed to hold above the 1.5915 level but the recovery was residual as the Sterling closed the day at 1.5965, slightly above opening price but well below the 1.6000 level.
Main headlines in the American session:
US: Initial Jobless Claims rose to 374K
Canada: New Housing Price index up 0.1% MoM in August
Bank of Japan governor says he will continue to aggressively fight deflation
Republicans to present short-term debt limit on Thursday
New proposed debt ceiling limit – Nov 22
Bullard: October taper looking less likely because of government shutdown
Harry Reid says Democrats won’t negotiate until government reopened
Wall Street rallies furiously and posts best day in 2013 on deal hopes
The market just forgot that the jobless claims and Canadian housing price indexes showed weaker than expected numbers. The Dow, S&P 500 and Nasdaq posted daily gains above 2% and erased weekly losses.
The US Dollar advanced for third day against the Japanese Yen and after rising around 170 pips from Tuesday's low at 96.55, the USD/JPY is now trading at 98.15. The pair is "still well bid and looking for a test of 98.60 100 DMA," commented FXstreet.com's Valeria Bednarik in a recent report.
The EUR/USD traded mostly sideways in the day, with the pair moving in between 1.3515 and 1.3540 the last part of the session. The Euro to Dollar exchange rate is now at 1.3520 and it's maintaining the neutral tone.
The GBP/USD managed to hold above the 1.5915 level but the recovery was residual as the Sterling closed the day at 1.5965, slightly above opening price but well below the 1.6000 level.
Main headlines in the American session:
US: Initial Jobless Claims rose to 374K
Canada: New Housing Price index up 0.1% MoM in August
Bank of Japan governor says he will continue to aggressively fight deflation
Republicans to present short-term debt limit on Thursday
New proposed debt ceiling limit – Nov 22
Bullard: October taper looking less likely because of government shutdown
Harry Reid says Democrats won’t negotiate until government reopened
Wall Street rallies furiously and posts best day in 2013 on deal hopes