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Asian Session – Dollar struggles as US gov shutdown damps sentiment

Posted on October 2, 2013 at 6:23 am GMT

The U.S dollar eased lower against the yen in the Asian session on Wednesday as investors are being cautious about when the US government shutdown will end. A longer lasting shutdown will have a bigger impact on the US economy. Fed tapering will likely be postponed if the deadlock continues. Also the US jobs data – nonfarm payrolls – scheduled for Friday will not be released. The gridlock in Congress to reach a deal on legislation for funding the US [..]

US Session – Dollar weak as markets wait for end of US government shutdown

Posted on October 1, 2013 at 7:51 pm GMT

The dollar was little changed in the US session on Tuesday, remaining weak as a result of the US partial government shutdown which began today after the US Congress was unable to reach an agreement on a spending bill before the Monday deadline. Also causing concern is the upcoming October 17 deadline to raise the debt ceiling to avert a default by the US. Investors are in a wait-and-see-mode now as they are uncertain how long the shutdown will last. [..]

European Session – Euro falls after weak German jobs data and slowing Eurozone growth

Posted on October 1, 2013 at 12:31 pm GMT

The US government shutdown was the dominant news today and the main driver of the markets. The US dollar fell as soon as the news broke early Tuesday and remained under pressure by the European session. Investors are reluctant to buy the dollar as the government shutdown would curb the economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer. The US Congress was unable to reach an agreement on a funding bill and resulted in [..]

Forex News – Sterling steady despite weaker UK manufacturing growth in August

Posted on October 1, 2013 at 9:04 am GMT

The British pound dipped briefly in a knee jerk reaction after some weak UK manufacturing sector data showing the industry growth slowed slightly in September from a two-year high the month before, driven lower by a slowdown in export orders. A report released by the Markit/CIPS showed the UK Purchasing Managers’ Index (PMI) dropped to 56.7 from August’s 57.1, a slightly weaker reading than the expected rise to 57.3. The bright side is that the employment sub-index rose to 54.0 [..]

Asian Session – Dollar falls versus yen as US government shuts down

Posted on October 1, 2013 at 6:29 am GMT

The US dollar fell against the yen early on Tuesday after the US government shutdown deadline passes and Congress was unable to reach a deal on a spending bill.This is the first shutdown in 17 years, since 1997 and it is unclear how long it will last. The US Congress reached a deadlock as the House of Representatives and the Senate failed to reach and agreement on a spending bill for the new fiscal year which begins today. This comes [..]

US Session – USDJPY rises after Chicago PMI data, focus back on US shutdown

Posted on September 30, 2013 at 7:19 pm GMT

Investors stayed away from the US dollar on Monday as the US government shutdown looms and there are low expectations that a deal will be reached on spending legislation by the deadline at midnight to avoid the shutdown. The US Congress must vote to pass a short-term budget by midnight in order to keep the government open. The dollar traded lower against a basket of major currencies on Monday, with the ICE dollar dropping to 80.194. The euro trimmed earlier [..]

European Session – Sterling outperforms as politics pressure Euro and Dollar

Posted on September 30, 2013 at 11:32 am GMT

The European Session showed little change following from the risk-off sentiment in Asia as political tensions from US to Italy keep investors on edge. Also, disappointing China manufacturing PMI data weighed on sentiment. In the United States, the government is at the brink of a shutdown at midnight tonight (US time) on a failure of an agreement between the House Republicans and the Democratic Senate to pass a budget bill unless Obamacare is delayed by a year. In Italy, the [..]

Forex News – US government shutdown looms as midnight deadline approaches

Posted on September 30, 2013 at 9:31 am GMT

Dominating the headlines on Monday is the political crisis in Washington DC which could send the markets in a tailspin. The dollar has certainly been negatively affected, and fell to a month low against the yen in early trading on Monday. The US government is at risk of a shut down as there is failure to reach a realistic budget agreement and to pass a temporary funding bill to keep US federal agencies open. The last government shutdown was 17 [..]

Technical Analysis – EURUSD consolidates in lower range

Posted on September 30, 2013 at 7:46 am GMT

EURUSD has been consolidating in a range since September 19 after a sharp 20 pip gain on Sept 18. The pair has been confined in a range between highs of $1.3567 and lows of $1.3461. Referring to the 4H chart: In early Monday trading EURUSD fell to the lower end of the range where it has found support above $1.3459, which is the 23.6% Fibonacci of the move from the Sept 6 low to the Sept 19 high. Support is [..]

Asian Session – Yen gains over political troubles in US and Europe

Posted on September 30, 2013 at 5:51 am GMT

The dollar tumbled to a one-month low against the yen as the US government is at risk of shutting down. Risk off sentiment in the markets gave the safe haven yen a boost. Meanwhile in Washington, it seemed increasingly unlikely that Republicans and Democrats could reach a deal on funding the government before the fiscal year ends at midnight on Monday. USDJPY opened in Asia with a gap lower at 97.64 compared to Friday’s close of 98.19 yen. The pair [..]

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