15 Oct 2013
Session Recap: The never-ending debt story hurts the USD
FXstreet.com (San Francisco) - In the day that the US market believed in an agreement that it doesn't, the US dollar get hurt as Washington didn't get a deal with the impending US default just coming. The USD fell against its major competitors after losing part of its initial gains.
Talks among US Congress’ leaders this Tuesday saw dollar strengthen early Europe, on hopes a deal will be reached before the end of the day on extending the debt ceiling. But the excitement that lasted all through the day, suddenly reversed on a halt in conversations mid American afternoon announced by doom headlines from Senator Feinstein stating “it’s all fallen apart.” US stocks sunk along with dollar that trades negatively against most of its rivals, big exception made by EUR and CHF.
As US session comes to an end, market talks are that there’s still a chance the House will try to pass Republican fiscal plan late Tuesday, but investors are losing their faith on the greenback, as debt ceiling limit is about to be reached in a couple of days, leading to a technical default of the - once? – biggest economy of the world.
The EUR/USD fell 0.33% on the day after an initial sell-off in the European session, however, the pair managed to recover ground on the Senate pause and now it is closing above the 1.3500 at 1.3515. In the 1-hour chart, "indicators head higher from oversold readings, while the 4 hours chart shows also shows indicators heading higher below their midlines," comments Valeria Bednarik from FXstreet.com. "There’s little in the middle up to 1.3550 static resistance area while once above, another run to the top of the range around 1.3600 seems likely for this Tuesday."
The GBP/USD bounced at the 1.5915 key support with the pair testing the 1.6000 area and closing at 1.5990. The USD/JPY declined from intra-day high at 98.70 to close at 98.30 and the AUD/USD extended last day advances to test the 0.9550 area and close back at 0.9515.
Main headlines in the American session:
US: NY Empire State index fell to 1.52 in October
Canadian Sept existing home sales +0.8% m/m vs +2.8% prior
House Republicans establish own plan to end shutdown and raise debt ceiling
US Senate suspends debt limit negotiations
Wall Street succumbs to politics in Washington
Talks among US Congress’ leaders this Tuesday saw dollar strengthen early Europe, on hopes a deal will be reached before the end of the day on extending the debt ceiling. But the excitement that lasted all through the day, suddenly reversed on a halt in conversations mid American afternoon announced by doom headlines from Senator Feinstein stating “it’s all fallen apart.” US stocks sunk along with dollar that trades negatively against most of its rivals, big exception made by EUR and CHF.
As US session comes to an end, market talks are that there’s still a chance the House will try to pass Republican fiscal plan late Tuesday, but investors are losing their faith on the greenback, as debt ceiling limit is about to be reached in a couple of days, leading to a technical default of the - once? – biggest economy of the world.
The EUR/USD fell 0.33% on the day after an initial sell-off in the European session, however, the pair managed to recover ground on the Senate pause and now it is closing above the 1.3500 at 1.3515. In the 1-hour chart, "indicators head higher from oversold readings, while the 4 hours chart shows also shows indicators heading higher below their midlines," comments Valeria Bednarik from FXstreet.com. "There’s little in the middle up to 1.3550 static resistance area while once above, another run to the top of the range around 1.3600 seems likely for this Tuesday."
The GBP/USD bounced at the 1.5915 key support with the pair testing the 1.6000 area and closing at 1.5990. The USD/JPY declined from intra-day high at 98.70 to close at 98.30 and the AUD/USD extended last day advances to test the 0.9550 area and close back at 0.9515.
Main headlines in the American session:
US: NY Empire State index fell to 1.52 in October
Canadian Sept existing home sales +0.8% m/m vs +2.8% prior
House Republicans establish own plan to end shutdown and raise debt ceiling
US Senate suspends debt limit negotiations
Wall Street succumbs to politics in Washington