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4 Oct 2013
Session Recap: Dollar hits an eight-month low as the debt ceiling countdown starts
FXstreet.com (San Francisco) - Not only the Congress hasn't solved the US government shutdown impasse but now market fears the upcoming debt ceiling talks that must be complete by mid October. The USD traded lower on Thursday amid those concerns and weaker than expected economic data.
As the US government shutdown entered a third day Wall Street declined hard and the US Dollar index performed its fifth negative day in row to hit 8-month lows around 79.70.
The EUR/USD rallied to the highest level since February 4 at 1.3645 and now the pair is closing in consolidation mode at 1.3615. "The hourly chart shows price held above 20 SMA that continues grinding higher, while indicators stand in positive territory," FXstreet.com's Valeria Bednarik commented in a recent report. "Main bullish target continues to be 1.3710, this year high, while 1.3570/80 area will likely attract buyers if reached, halting attempts to break lower."
GBP/USD logged loses for the first time in the last 5 sessions after declining from the 1.6250 to close below the 1.5200 area at 1.6150. The Sterling failed to break above the 1.6260/1.63 on Thursday, the same area it failed in April and September 2012 and April 2013. This time, "a break below 1.6160 will complete a double top, which can suggest at least some short-term consolidation, possibly a bearish correction," FXTimes' founder Fan Yang notes. A double top "can suggest at least some short-term consolidation, possibly a bearish correction."
The USD/JPY traded lower for third day and touched sub 97.00 levels at 96.90. However the pair managed to recover and currently it is trading at 97.25. "The bearish tone prevails, and the hourly chart suggest more slides for current session, as indicators head south after correcting oversold readings," affirms Bednarik. "The daily chart shows 200 SMA around 96.50 acting as strong dynamic support, as price has held above it since late November last year."
Gold is trading at 1,317, almost flat on the day. The metal remains pretty shallow as it barely stands above $1,300/oz. Despite the run, risk remains to the downside as long as $1,342 caps the upside."
Main headlines in the American session
US: Initial Jobless Claims rose to 308K
US: ISM Non-manufacturing PMI drops to 54.4 in September
Fed’s Williams: Unemployment too high, inflation too low
Fitch affirms Ireland at BBB+, outlook stable
Portugal announces it has passed bailout review
Cantor prepares House Republicans for long fight – WSJ
Wall Street gets its shutdown and declines hard
As the US government shutdown entered a third day Wall Street declined hard and the US Dollar index performed its fifth negative day in row to hit 8-month lows around 79.70.
The EUR/USD rallied to the highest level since February 4 at 1.3645 and now the pair is closing in consolidation mode at 1.3615. "The hourly chart shows price held above 20 SMA that continues grinding higher, while indicators stand in positive territory," FXstreet.com's Valeria Bednarik commented in a recent report. "Main bullish target continues to be 1.3710, this year high, while 1.3570/80 area will likely attract buyers if reached, halting attempts to break lower."
GBP/USD logged loses for the first time in the last 5 sessions after declining from the 1.6250 to close below the 1.5200 area at 1.6150. The Sterling failed to break above the 1.6260/1.63 on Thursday, the same area it failed in April and September 2012 and April 2013. This time, "a break below 1.6160 will complete a double top, which can suggest at least some short-term consolidation, possibly a bearish correction," FXTimes' founder Fan Yang notes. A double top "can suggest at least some short-term consolidation, possibly a bearish correction."
The USD/JPY traded lower for third day and touched sub 97.00 levels at 96.90. However the pair managed to recover and currently it is trading at 97.25. "The bearish tone prevails, and the hourly chart suggest more slides for current session, as indicators head south after correcting oversold readings," affirms Bednarik. "The daily chart shows 200 SMA around 96.50 acting as strong dynamic support, as price has held above it since late November last year."
Gold is trading at 1,317, almost flat on the day. The metal remains pretty shallow as it barely stands above $1,300/oz. Despite the run, risk remains to the downside as long as $1,342 caps the upside."
Main headlines in the American session
US: Initial Jobless Claims rose to 308K
US: ISM Non-manufacturing PMI drops to 54.4 in September
Fed’s Williams: Unemployment too high, inflation too low
Fitch affirms Ireland at BBB+, outlook stable
Portugal announces it has passed bailout review
Cantor prepares House Republicans for long fight – WSJ
Wall Street gets its shutdown and declines hard