Yen gains as US debt worries concern markets

October 14, 2013

Weekend talks in Washington over the US debt ceiling ended without any progress in the gridlock, raising concern for investors who are nervous as the October 17 deadline comes closer.

If the borrowing limit is not raised by this date, the US government will soon be unable to pay its debts and will run out of money, probably causing a domino effect to the rest of global markets. 

Investors will closely monitor these debt negotiations and hope a last-minute compromise will be reached.

The US markets will be closed today for the Columbus Day public holiday, so trading in the dollar will likely be subdued.

The lack of news on the debt talks caused a boost to the safe haven yen. Also adding to damp market sentiment was disappointing China data which showed export growth unexpectedly slowed in September. China is the world’s second largest economy, so any weak data has an impact on markets.

The safe haven yen gained for the first time in four days against the dollar, with USDJPY gapping lower and trading down 0.3 percent to 98.25 yen.

Against the euro, the yen rose 0.2 percent to 133.27 per euro. 

The dollar weakened against the euro, down 0.2 percent to $1.3565 per euro.

Publication source
FxNet information  FxNet reviews

October 25, 2016
US flash Markit PMI jumped 1.7 points to 53.2 in October
Asian stock markets are mostly down, as the positive confidence indicators out of Europe and the U.S. yesterday were overshadowed by weak GDP numbers from South Korea, which weighed on most markets. Topix and Nikkei outperformed, with a weaker Yen underpinning exporters...
October 25, 2016
Fed speech, flash PMI push dollar to a fresh 8-month high
Marking the final day of Fed speeches ahead of the one-week blackout period starting today, FOMC voting member, Bullard said that December was most likely for a rate hike...
October 25, 2016
M&A activities drove equities, focus shifts to earnings
Equity markets began the week on a positive note with M&A activities, positive earnings, and better than expected manufacturing data from the Eurozone and U.S. all boosting appetite to risk...

Fort Financial Services Rating
Tickmill Rating
FxPro Rating
FXCM Rating
FBS Rating
FIBO Group Rating

Beeoptions Rating
365BinaryOption Rating
OptionsXO Rating
24option Rating
Porter Finance Rating
IQ Option Rating