Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Dollar Drifts As Markets Wait For News On US Budget Talks

ByFxNet
Published 10/07/2013, 09:08 AM
Updated 04/25/2018, 04:40 AM

Dollar weakness due to the gridlock in US politics continues to be the main theme in currency markets on Monday. Investors are unwilling to take on risk while there is no sign of progress by US policymakers to negotiate the US budget and debt ceiling.

Talks in the US Congress over the weekend showed neither Republicans nor Democrats reached a compromise. There are less than two weeks left until the US debt ceiling is reache,d and unless this limit is raised, the US government will default as it will be unable to pay its debts.

This default will cause a domino effect through the US economy as well as to the rest of the world since many other countries hold US dent in the form of US treasuries.

The European trading session was relatively quiet as investors are standing back, with major currency pairs remaining within recent ranges.

The dollar is down 0.15 percent against a basket of major currencies to an eight-month low around 80.0.

The yen is strong due to the US government standoff, pushing the USD/JPY to 96.92 yen.

The euro gained as a result of the soft dollar, with EUR/USD up 0.1 percent to $1.3575, close to an eight-month high.

Risk aversion led to a flight to the safety of German bonds, thereby leading to a drop in the 10-year German bond yield by 2 basis points to 1.81 percent.

Trading is expected to remain light in the US session as there are no key data releases. US Congress is reconvening and investors await any headlines regarding this.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.