USD starts weaker as debt deadline nears and no deal in sight
City Index October 14, 2013 2:04 PM
<p>We enter the 14th day today of the US shutdown with the debt limit to be reached by Thursday and no sign of a deal. […]</p>
We enter the 14th day today of the US shutdown with the debt limit to be reached by Thursday and no sign of a deal. The one good bit of news is that the talks are continuing and most believe it will be resolved by the time a default comes in to play. As of yet USD has started weaker from the open, dropping against JPY, EUR and GBP. With no data out today for the US due to the bank holiday all are awaiting news from the US about any deals.
Overnight in Asia we see China export data drop and inflation rise. This has kept the AUD relatively flat on risk off trade, with data out that home loans in Australia have decreased.
In the eurozone we have some data releases, with industrial production expected to be better than last month and the Euro Group meetings, which will be watched for any mention of Greek bailout number 3. Merkel will be busy this week as she tries to form the coalition government so any news on this could have an impact on the euro.
Supports 1.3540 1.3500 1.3480 | Resistance 1.3600 1.3645 1.3710
Supports 98.00 97.70 97.50 | Resistance 98.50 98.75 99.20
Supports 1.5950 1.5900 1.5875| Resistance 1.6010 1.6065 1.6115