Dollar extends lower versus yen over risk of US government shutdown

September 30, 2013

Sterling is strong on Monday and hit a near 9-month high against a basket of major currencies. The pound was chosen as a safe haven today against a weaker euro and dollar as political problems in Italy and the United States increased risk aversion amongst investors.

Also helping the pound was some UK data which showed mortgage approvals for house purchases hit their highest level in more than five years last month, a latest sign of recovery in the housing market. This raised expectations that the Bank of England will raise interest rates earlier than planned. 

The pound hit its highest since mid-January at 83.40 pence per euro today while against the dollar, it was up 0.15 percent at $1.6160.

The risk of a US government shutdown put the dollar under pressure, while the euro is down on the threat of fresh elections in Italy after the resignation of five ministers from former premier Silvio Berlusconi's party at the weekend.

The euro fell to $1.3478  before attempting to break above $1.3500, while it fell to a three-week low against the yen at 131.38 yen and was down 0.2 percent versus the Swiss franc at 1.2225.

The dollar was little changed in the European session after falling to a one month low versus yen as the midnight deadline approaches for a US government shutdown.  Deadlock in the US Congress over raising the US debt ceiling  has increased the risk that the government will run out of money from tomorrow.

Publication source
FxNet information  FxNet reviews

January 20, 2017
The dollar has settled moderately lower
Asian stock markets were mixed overnight, after U.S. and European shares closed in the red Thursday. Japan and mainland China bourses managed to move higher (Chinese GDP beat expectations at 6.8%)...
January 20, 2017
A huge disappointment in the UK data
UK retail sales fell most since 2012. We see he fastest pace of decline in almost five years in December. It is due to sales of... pretty much everything from household goods to clothing and food...
January 20, 2017
Trump takes office today. Markets await inauguration speech
Investors await Trump's inauguration and speech due later today as he takes office as the 45th President of the United States. The U.S. dollar was seen giving up some of the gains yesterday with some volatility coming off the EURUSD on the back of the ECB meeting...

HotForex Rating
FOREX.com Rating
OANDA Rating
FXCM Rating
Grand Capital Rating
Larson&Holz IT Ltd Rating

EZTrader Rating
99Binary Rating
Empire Option Rating
OptionBit Rating
Binary Brokerz Rating
IQ Option Rating