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Risk Sentiments Lifted As US Close To Short Term Debt Ceiling Deal

ByActionForex
Published 10/11/2013, 03:12 AM
Updated 03/09/2019, 08:30 AM

Risk markets surged on news that the US is close to having a deal on raising the debt ceiling for short term. The House of Representatives threw a proposal to raise the debt ceiling to cover borrowing requirements through till November 22, paving the way for negotiation on the fiscal budget. Yet, the plan does not resolve the government shutdown. House Republicans described the meeting with Obama as "a useful and productive" while the White House described "a good meeting," though "no specific determination was made" about the Republicans' offer. Negotiations on the matter would continue. The White House said that Obama would sign a Republican-proposed plan to increase the short-term debt ceiling with "no partisan strings attached".

DOW jumped 323.09 pts overnight to close at 15126.07, back above 15000 handle. US treasury yield also rose, with 10 year yield closed at 2.685% but that was way off the intraday high of 2.722%. Dollar index, on the other hand, was nearly flat and is trading at around 80.5 for the moment. In the currency markets, dollar was stuck in tight range against European majors and showed a little sign of softening. Main major movers were found in yen crosses which was boosted by risk appetite.

The economic calendar remains rather light today. Japan Money stock M2 + CD rose 3.8% yoy in September. Domestic CGPI rose 0.3% mom in September. German CPI was finalized at 1.4% yoy in September. The UK will release construction output today. Main focus in US session will be on Canadian employment which is expected to show 15k growth in September. Unemployment rate is expected to be unchanged at 7.1%.

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