Currency Note US Dollar

US dollar struggles as another day passes without resolution to the budget debacle.

By Ricky Bean October 8th, 2013

The US dollar started the week in unsurprisingly disappointing fashion, losing ground against its major trading partners as the US government shutdown looks no closer to resolution. With investors growing increasingly doubtful that an agreement on raising the debt ceiling can be reached before the 17th October deadline, the dollar lost ground as investors sought alternative safe havens for their money. Adding to this train of thought, the US House Speaker suggested “That’s the path we’re on” when discussing the possibility of the US government defaulting on its debt for the first time in history. There is little in the way of significant economic data due to be released today; however tomorrow evening see the FOMC release their minutes from their latest policy meeting and should provide some insight on how close the Federal Reserve is to tapering its quantitative easing program. Until then, the US dollar’s relative strength will be dictated by news and rumour surrounding a potential deal on next year’s budget. Get in touch with your trader now for an up to the minute price on the US dollar, as uncertainty underpins the currency.