US dollar is higher today, thanks in large part to uncertainty over the government shutdown. So far, there are no signs of an end to the impasse, and the added stress of a debt ceiling debate could be coming next. Risk aversion is making an appearance as a result, and there are concerns about what could be next.
Greenback is a little higher against its major counterparts today. A little spark of risk appetite was seen earlier as Janet Yellen was tapped by President Barack Obama to replace Ben Bernanke as head of the Federal Reserve. However, that risk appetite was quickly overcome by the pressing uncertainties surrounding the currency battle in the US Congress.
A government shutdown is still in effect, which could slow the already difficult US economic recovery. Not only that, but there are concerns about a “technical default” if the debt ceiling issues are resolved by next week. There is a lot going on, and a lot of uncertainty, and that is leading to risk aversion in the markets, and helping the US dollar, even though it’s the US economy that’s in focus right now.
At 14:21 GMT EUR/USD is down to 1.3511 from the open at 1.3574. GBP/USD is down to 1.5936 from the open at 1.6084. USD/JPY is up to 97.3355 from the open at 96.8715.
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