Oct. 7: Asian session
There was no progress on US deadlock over the weekend. EUR/USD opened with a small gap up at $1.3562 after closing at $1.3552 on Friday. Euro area will release final Q2 GDP at 09:00 GMT. No revisions are expected (+0.3%). GBP/USD is trading around $1.6030 after it lost about 130 pips on Friday. EUR/GBP slid from nearly a 1-month high before the Bank of England’s policy meeting this week on Oct. 10.
Demand for Japanese yen and Swiss franc as safe havens increased as US Treasury Secretary Jacob J. Lew renewed his call for extending the nation’s debt limit to avoid a default as America will run out of its ability to borrow on Oct. 17. House Speaker John Boehner said the US could end up in default unless President Barack Obama negotiates. USD/JPY is trading on the downside, just above 97.00. USD/CHF declined to 0.9040 after rising to 0.9080 on Friday.
AUD/USD touched $0.9450, but then eased down to $0.9415. Aussie got hit after the World Bank cut China 2013 growth outlook from 8.3%to 7.5%. NZD/USD is trading on the downside in the $0.8300 area. According to New Zealand’s finance minister Bill English, NZD is ‘still too high’. USD/CAD is testing levels above 1.0300. Canada will release building permits at 12:30 GMT.