US risks losing AAA rating as debt talks stall

October 16, 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.

Publication source
FxNet information  FxNet reviews

February 17, 2017
US dollar poised to end the weak on a bearish note
The US economic data continued to post strong gains with building permits and Philly Fed manufacturing index beating expectations strongly. However, the markets were not quite impressed despite the data points supporting the hawkish Fed for more rate hikes...
February 17, 2017
Brent remained rather unchanged
There seems to be little drive for any real direction now. Brent remained rather unchanged on Thursday staying in a tight range above 55.50 dollars per barrel. The Asian upward impetus lost it legs when European markets opened...
February 16, 2017
U.S. dollar remained near its fresh highs
After touching the level 1.0550 the euro bounced off and was able to reverse a minor part of its losses. The overnight’s recovery attempt stalled just under 1.0600 barrier. The pair came under renewed selling pressure and slipped into negative territory in the late Asian session...

Larson&Holz IT Ltd Rating Rating
 FXTM Rating
FXCM Rating
FxPro Rating
Orbex Rating

Porter Finance Rating
Beeoptions Rating
TopOption Rating
Migesco Rating
Dragon Options Rating
OptionFair Rating