US risks losing AAA rating as debt talks stall

16 October, 2013

The United States is at risk of losing its prized triple-A rating after Fitch ratings agency announced it placed the country on notice for a downgrade.

Debt ceiling talks stalled again last night as lawmakers in Washington squabbled over the conditions for raising the US government’s debt limit. By tomorrow, October 17th, the US government will no longer have authority to borrow, putting it at risk of defaulting very soon on its payments and obligations, which would result in market turmoil. 

In an official statement, Fitch said the following:

"Although Fitch continues to believe that the debt ceiling will be raised soon, the political brinkmanship and reduced financing flexibility could increase the risk of a U.S. default." 

Investors are jittery and are being cautious, resulting in alot of trading ranges in most currency pairs. The dollar/yen has been swinging back and forth from a two-week high since yesterday. In Asia this morning, the pair bounced from 98.12 to 98.62 around where it consolidated.

Dollar advanced against the euro by 0.1 percent to $1.3515. But the euro gained versus yen by 0.3 percent to 133.09.

Gold was back up as investors rushed to safety, lifting its price by over $7 to back above $1,280 an ounce.

Source link  
Aussie declines despite shrinking Australian trade deficit

The Asian session was calm as the economic calendar was light and most investors were positioning ahead of key risk events later this week, primarily the US nonfarm payrolls report on Friday...

USD/JPY slips as Nikkei falls in risk-off market after disappointing China PMI data

The first full trading week of 2014 began today, with Japan opening for the first time after a two-week holiday...

Technical Analysis On Major Currencies By FXNET

The pair extended the positive trading, whereas it approached 61.8% correction at 1.3625

Euro Hits Fresh 1-Month High After German Inflation Data

The dollar rose above 102.00 yen for the first time since May 29, while the euro flirted with the key $1.36 handle and hit a new four-year high within striking distance of 139.00 yen...

Aussie Powers Through & Dollar Hits New 6-Month High Against Yen

The best performing currency during Thursday’s Asian session was the Australian dollar which jumped against its US counterpart after strong Australian business spending data. Private Capital Expenditure increased by 3.6% quarter-on-quarter despite expectations for a decline by 1.1%...

Sterling and Euro Outperform Vs US Dollar

The main currency of the day was the sterling which outperformed against the dollar and euro, as well as against the yen after being boosted by strong UK second quarter growth data...

Euro Steady Around $1.35

The euro was stronger today particularly against the dollar and the pound. While there were no economic data releases today from the Eurozone to explain the move, there were some headline news which affected sterling and dollar...

Yen Up Against Dollar After Weak US Data

The yen was supported by safe haven demand today after the release of a slightly dovish Bank of Japan policy meeting minutes. The minute from last weeks meeting showed some concern about Japans economic outlook and whether the central bank 2% inflation target could be met...

EUR/JPY Hits A New 4-Year High

The dollar remains bullish against the yen, while the euro hit a new four-year high against the Japanese currency in todays Asian session...


Share it on:   or