
Currency pairs seem to be quite indifferent to the shutdown of US
government non-essential services. Like most, dealers seem to be taking the
view that the problem will be resolved in time, and in the meantime are
concentrating on business as usual.
Thus, the Euro / US dollar pair is responding far more to the fact that
it has reached a technical resistance level in the 1.36 area. Gold (XAU/USD) is
still exhibiting its long to medium term dominant downward trend (having
bounced off support at 1281.00), as is to be expected given that US
Quantitative Easing (QE) will be discontinued just as soon as the present
difficulties have been resolved and the Aussie (AUD/USD) and Kiwi (NZD/USD)
pairs are maintaining their rise on the back of indications that interest rates
have further to rise (New Zealand) and were kept firm in the light of a
possible further easing in Australia last week.
All this could change in the event that the next deadline for the US
Congress (Oct 17th, which is 10 days away) passes and agreement is
not reached so that the government is forced to default on its debt
obligations.
very true...agree with this.
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