Market News

The U.S. Dollar was steady versus major rivals during the Asian trading session Monday with investors wary ahead of the Federal Reserve’s 2-day policy setting meeting which begins tomorrow.

Investors now appear to be fully resigned to the fact that the Federal Reserve won’t begin tapering its monthly asset purchases anytime soon given the recent data and events, all of which is weighing heavy on the U.S. Dollar which is broadly on the defensive.

The U.S. Dollar crept higher against its major rivals during the Asian trading session but stayed close to recent trading ranges due to wary investors who are worried about the Chinese liquidity situation.

The U.S. Dollar slunk close to a 2-year trough against the common currency Euro in the wake of an unexpectedly dismal labor data which dashed investors’ hopes that the Federal Reserve might begin to withdraw its stimulus measures later this year.

The U.S. Dollar inched higher during the Asian trading session, staying above a recently struck 8-month trough though market players are hedging their bets ahead of today’s late release of the September new private sector jobs figures from the U.S. Department of Labor.

The dust has barely settled with the end of the government stalemate, but investor worries are growing quickly as the likelihood that the Federal Reserve will implement a withdrawal of the current loose monetary policy are just as quickly evaporating.

The relief rally which followed the news that the U.S. government managed to avert a debt default was short-lived as investors now consider the economic tally of the damages sustained with the 2-week long shut down of the federal government.

The U.S. Dollar was steadily lifted against its major peers during the Asian trading session, supported by the Wednesday announcement by the U.S. Senate that the standoff between the political parties could be coming to an end as a deal had been reached between them.

Optimism that a deal which can avert the U.S. defaulting on its debt continues to grow even as the deadline edges closer.

The U.S. Dollar firmed during the Tuesday session in Asian, touching on a 2-week peak versus the safe haven Japanese Yen after indications of an impending deal between the two main political parties in the U.S. hinted that the stalemate would soon be drawing to a close.

With another weekend now concluded and still no compromise between the U.S. Democrats and Republicans towards the end of the political stalemate, the U.S. Dollar slipped again in Asian trading while the safe haven Japanese Yen gained.

Investors are hopeful that, as the deadline for a U.S. debt default draws nearer, the two political forces will have been able to work together and cobble together some deal which will avert the crisis.

The U.S. Dollar steadily gained momentum and moved higher during the Asian trading session as signs that Washington’s political stalemate could be on the verge of breaking apart is giving investors some much needed hope that the impending debt default could be averted.

The dollar came close to an 8-month low on Wednesday as the government shutdown continued, bringing the United States government closer to the mid-October deadline that may see a historic debt default. The panic spread beyond US borders into both Europe and Asia, where shares continued to plummet.

With the U.S. government’s stalemate now entering week number two, the U.S. Dollar tumbled close to a recently struck 8-month trough as investors ponder lawmakers’ failure to reach any consensus and the affect that might have on the looming debt default date.