Currency Analyst since 2010

Oct. 17: Asian session

US Congress voted in favor of a deal to end a US government shutdown and raise the debt limit, damping demand for haven assets. The deal would fund the government through Jan. 15, 2014, and suspend the debt limit until Feb. 7, setting up another round of confrontations then. The Senate voted 81-18 for this plan to halt the 16-day shutdown and raise the borrowing limit and the House of Representatives voted 285-144. The bill’s now waiting to be signed by President Obama.

EUR/USD rose to $1.3550. Watch for the euro zone’s current account results at 08:00 GMT along job market data in the US at 12:30 GMT and Philadelphia’s Fed manufacturing index at 14:00 GMT. GBP/USD went up to $1.5986. Britain will release retail sales at 08:30 GMT (forecast: +0.5%; previous: -0.9%).

USD/JPY printed a high at 99.00 (highest since June) earlier in the Asian session. Later on the pair has retraced lower, testing 98.40. USD/CHF slid to 0.9120.

USD growth versus the higher-yielding currencies remains subdued: the markets are gauging the impact of the recent impasse on economic growth and prospects the Fed will taper stimulus. AUD/USD has retraced to $0.9530 after having touched a fresh 4-month high at $0.9570. Australia NAB quarterly business confidence improved to 3 (vs. prior -1). NZD/USD is swinging in the $0.8410/45 range. USD/CAD has slowed the yesterday’s decline, consolidating around 1.0320.

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