Back
8 Oct 2013
European markets lack the Asian session's optimism
FXstreet.com (London) - Despite overnight optimism in the Asian session, Europe has continued where it left off yesterday, with doubts in Congressional ability to bring a swift resolution to the debt ceiling stand off.
The Ftse has tumbled 0.75 percent while the Dax has lost 0.25 percent.
Overnight, the AUD and NOK were the big winners on risk-on betting that the US would soon end its partial government shutdown. But those trends have begun to reverse as the US ticks one day closer to the October 17 debt ceiling after which it will not be able to service its debt commitments.
Despite ostensibly being locked in negotiations, neither side of the aisle seems ready to compromise on a deal that would allow for a temporary extension of the USD6.699 trillion limit. Republican attempts to tie a raise to cuts in federal spending have so far been rebuffed by Democrats and President Obama.
USD/JPY has been the pair of the shutdown, reflecting sentiment towards a breaking of the deadlock. The pair climbed to JPY97.1900 overnight, but has seen some selling as we approach the US session.
The Ftse has tumbled 0.75 percent while the Dax has lost 0.25 percent.
Overnight, the AUD and NOK were the big winners on risk-on betting that the US would soon end its partial government shutdown. But those trends have begun to reverse as the US ticks one day closer to the October 17 debt ceiling after which it will not be able to service its debt commitments.
Despite ostensibly being locked in negotiations, neither side of the aisle seems ready to compromise on a deal that would allow for a temporary extension of the USD6.699 trillion limit. Republican attempts to tie a raise to cuts in federal spending have so far been rebuffed by Democrats and President Obama.
USD/JPY has been the pair of the shutdown, reflecting sentiment towards a breaking of the deadlock. The pair climbed to JPY97.1900 overnight, but has seen some selling as we approach the US session.