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

January 17, 2017
ECB policy was focused on avoiding deflation trap
Asian stock markets were mixed, with Japan and ASX heading south amid reports that U.K. Prime Minister May will announce plans for a hard Brexit at today’s keynote speech. Yen strength is also continuing to put pressure on the Japanese markets...
January 17, 2017
Trump's inauguration and May's speech to shape up the markets this week
Markets started the week with no sharp changes and lower trading volumes, due to the Martin Luther King Day in the US, ahead of the crucial monetary policy decisions of the ECB and BoC...
January 17, 2017
Yen strengthens as markets jittery ahead of May's press conference
The U.S. dollar was trading weak yesterday in a holiday thin trading session. The Japanese yen strengthened strongly in the early hours today as investors turn cautious ahead of the British PM...

FIBO Group Rating
EXNESS Rating
Larson&Holz IT Ltd Rating
Fort Financial Services Rating
HotForex Rating
FBS Rating

Grand Option Rating
Banc De Binary Rating
24option Rating
365BinaryOption Rating
Beeoptions Rating
TopOption Rating