Euro under pressure; all eyes on US debt ceiling issue this week
City Index September 30, 2013 1:53 PM
<p>The US debt ceiling is the main focus this week, with a possible government shutdown on the cards one day away due to the parties […]</p>
The US debt ceiling is the main focus this week, with a possible government shutdown on the cards one day away due to the parties not agreeing on the Obamacare package. The major reactions in this so far have been JPY, which is the safe haven currency, so we will look for this to outperform until an official announcement is made on the situation.
Cable holding up well from the open. This is due to a house price surge to the most since 2007 as demand has increased, and also the announcement that the Tories will bring forward the help to buy project to help young Britons get 95% mortgages starting from next week.
Euro has had a weak start to the day after a risk off trade with China. The HSBC final PMI is coming in below expectations but still above the 50 mark, and German retails sales have not hit forecast numbers, keeping it under pressure.
Supports 1.3450 1.3385 1.3100 | Resistance 1.3625 1.3655 1.3720
Supports 97.55 96.80 96.30 | Resistance 98.00 98.40 98.85
Supports 1.6120 1.6060 1.6000 | Resistance 1.6250 1.6300 1.6390
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