Us politicians take it to the wire!
The US dollar’s movements yesterday were again heavily influenced by the government standoff and the hints of a resolution. With optimism increasing over a deal being made, the dollar managed to make some gains, notably for the first time in three days versus the euro. However, to date, no deal has been made and as we move closer to the tomorrows deadline when the US government must raise its debt ceiling, investors will be very anxious to see whether an agreement is actually made to prevent the US defaulting on its debt for the first time in history. This uncertainty led to Fitch (one of the big three credit rating agencies) lowering the US AAA credit rating to a negative outlook. Any further developments on this situation will continue to dominate dollar movements. Data released yesterday showed that the Empire State manufacturing survey came our below market estimates which highlights the negative implications the Government shutdown is having on the nation. Out today the main release will be the Beige Book which comments on the state of the local economies from all 12 Federal Reserve Banks, although any news surrounding the budget and the 17th deadline will cause a much bigger reaction in the global markets. Get in touch with your trader now for an up to the minute US dollar price, with the deadline on the doorstep.