Currency Note US Dollar

US politicians inch towards an agreement

By Ricky Bean October 15th, 2013

The US dollar continued to struggle yesterday, amidst the on-going government shutdown, and apparent lack of resolution. With a bank holiday in action across the US and Canada, the markets were quiet, but the talk of the nation defaulting on its debt only grew louder. With the Thursday deadline dangerously close, the dollar fell by the largest amount in almost two weeks, dropping against most of its major partners. The closer the US gets to defaulting on its debt, the more pressure will be exerted on the US dollar as the markets get ever more nervous that the unthinkable may actually happen. There was some talk of “progress” being made – but until there are clear signs that a deal may be struck, the whole market could remain very jittery. Today, the main data released will be the manufacturing index form the Empire State; however, this is sure to play second fiddle to any news of developments surround the debt ceiling debacle Get in touch with your trader now, as the US moves ever closer to the edge.