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9 Oct 2013
Session Recap: The US Dollar holds level in an ugly day in markets
FXstreet.com (San Francisco) - The US Dollar traded sideways on Tuesday as action was concentrated in stocks and Treasurys markets. Investors are concerned about the paralysis in the Congress and the impasse in the US shutdown. Everyone wants to talk in DC, but no one wants to listen.
Wall Street dropped hard with the Nasdaq performing its biggest drop since August 27 while both the Dow and the S&P closed below key multi-month areas defined by multi-month uptrend around 14,855 pts and 1,665 pts, respectively. 1-month Treasury yields rose to 0.35%, the highest since October 2008.
On currencies, the EUR/USD traded sideways in between 1.3555 and 1.3605. Technically speaking, the pair maintains a quite neutral technical stance in both 1 and 4 hours chart. "Panic in stocks however, should not benefit much dollar this time, leaving the yen as the sole owner of the safe haven status," comments FXstreet.com Chief Analyst Valeria Bednarik.
"Expect buyers to surge on EUR/USD on dips, with risk turning bearish only on a break below 1.3460 support," Bednarik adds. Now the pair is closing at 1.3575.
The GBP/USD tested Monday's lows at 1.6015 but the cable managed to recover and it is closing now at 1.6080. The USD/JPY is dealing with the MA 200 days area at 96.70 and after reaching a fresh low since August 12 at 96.55, the Dollar recovered to close at 96.90.
Main headlines in the American session:
Canada: Trade deficit rose to $1.31 billion in August
IMF cuts global growth outlook, urges US to raise debt ceiling
Top Japanese banker resigns in organized crime loan scandal
White House says Obama only willing to negotiate after the government is re-opened, threat of default removed
US sells $30 bn in 4-week bills at 0.35%
Wall Street declines to 1-month lows as nobody listens in the US Congress
Wall Street dropped hard with the Nasdaq performing its biggest drop since August 27 while both the Dow and the S&P closed below key multi-month areas defined by multi-month uptrend around 14,855 pts and 1,665 pts, respectively. 1-month Treasury yields rose to 0.35%, the highest since October 2008.
On currencies, the EUR/USD traded sideways in between 1.3555 and 1.3605. Technically speaking, the pair maintains a quite neutral technical stance in both 1 and 4 hours chart. "Panic in stocks however, should not benefit much dollar this time, leaving the yen as the sole owner of the safe haven status," comments FXstreet.com Chief Analyst Valeria Bednarik.
"Expect buyers to surge on EUR/USD on dips, with risk turning bearish only on a break below 1.3460 support," Bednarik adds. Now the pair is closing at 1.3575.
The GBP/USD tested Monday's lows at 1.6015 but the cable managed to recover and it is closing now at 1.6080. The USD/JPY is dealing with the MA 200 days area at 96.70 and after reaching a fresh low since August 12 at 96.55, the Dollar recovered to close at 96.90.
Main headlines in the American session:
Canada: Trade deficit rose to $1.31 billion in August
IMF cuts global growth outlook, urges US to raise debt ceiling
Top Japanese banker resigns in organized crime loan scandal
White House says Obama only willing to negotiate after the government is re-opened, threat of default removed
US sells $30 bn in 4-week bills at 0.35%
Wall Street declines to 1-month lows as nobody listens in the US Congress