Risk appetite was up today on news from Washington DC which suggested that there is likely to be a six week extension to the debt ceiling deadline.
By October 17 the US government will reach its borrowing limit so it is important to avert a default by raising this limit. Investors are happy that there are signs of progress in the debt talks.
EUR/USD is strong today, up 0.4% since yesterday’s close. Risk sentiment helped demand in the euro. However, the pair is still trading within its narrow range between $1.3462 and $1.3646 in the last three week since the September-18 FOMC decision. Economic data had little effect, with German CPI showing no surprise at 1.4%y/y and flat 0.0% m/m.
Sterling fell after a weaker than expected construction output data. GBP/USD is at $1.5970 into the US session and flat on the day.
USD/JPY traded in a relatively tight range in the Asian and European session and is entering the US session close to where it closed yesterday at 98.17.
By October 17 the US government will reach its borrowing limit so it is important to avert a default by raising this limit. Investors are happy that there are signs of progress in the debt talks.
EUR/USD is strong today, up 0.4% since yesterday’s close. Risk sentiment helped demand in the euro. However, the pair is still trading within its narrow range between $1.3462 and $1.3646 in the last three week since the September-18 FOMC decision. Economic data had little effect, with German CPI showing no surprise at 1.4%y/y and flat 0.0% m/m.
Sterling fell after a weaker than expected construction output data. GBP/USD is at $1.5970 into the US session and flat on the day.
USD/JPY traded in a relatively tight range in the Asian and European session and is entering the US session close to where it closed yesterday at 98.17.