Currency Note US Dollar

Will the US default on its debt?

By Ricky Bean October 14th, 2013

The US dollar ended last week with little major movement, as nothing of note drove the currency in either direction. Speculation over the on-going government shutdown and the fast approaching debt ceiling held further optimism that an agreement will be reached to raise the debt limit, and thus avoid a default, and as such has given encouragement for the US  dollar going forward. However, a preliminary consumer sentiment from the University of Michigan came in lower than expected, harming the economic outlook. This week starts with a bank holiday in the US, so no data, but more volatility in a less liquid market. Tomorrow also holds little of significant interest for the US dollar, with just Empire State manufacturing index being mildly influential data, and words from a member of the Federal Open Market Committee. Wednesday is equally uneventful, while Thursday finally brings some important releases, holding both the unemployment claims, an important factor in the albeit delayed tapering program conditions, and the manufacturing index from the Philly Fed. That, however, is it for major US data for the week, as Friday finishes off a largely quiet week for data releases with only FOMC members words liable to have any impact on the currency. Aside from this, any developments with the government shutdown  and raising of the debt ceiling will sure to be of interest to investors. Get in touch with your trader now for the latest news on the debt ceiling.