Forex »

US dollar continues to fall as budget impasse enters its third day

Finances
Share on StockTwits
Published on
www.finances.com
US dollar continues to fall as budget impasse enters its third day

The US dollar dropped another 0.2 percent against a basket of its major competitors after the US government entered its third day of partial shutdowns. The federal government will have exhausted its borrowing authority by October 17 should Democrats and Republicans fail to reach an agreement on the debt ceiling.

The greenback fell for the fourth time in the past five days, with the US dollar index reaching a session low of 79.63. The greenback would later consolidate at 79.75 as market participants reacted to several batches of economic data in Europe and America.

The dollar fell 0.3 percent against the euro after Germany’s service economy expanded at its fastest rate since February, according to a monthly release from Markit Group. Meanwhile, the euro area’s service economy reached a 27-month high on the strength of new business and greater output. The EURUSD has gained more than 1 percent over the previous five days, helping to send the pair above the 1.3620 handle.

Elsewhere in Europe, the British pound failed to extend its gains, falling 0.4 percent against the dollar after investors locked in profits. Support for the British pound escalated for most of the week after reports showed UK manufacturing and construction activity continued to strengthen in September.

The US dollar backtracked against its northern counterpart, the loonie, after hitting a high of 1.3551 the previous day. The USDCAD fell 0.2 percent to the 1.0320 region, as the greenback failed to rally on declining jobless claims. According to the Labor Department, 308,000 Americans filed for unemployment benefits last week, sending the four-week median average down to 305,000. Data on weekly jobless claims are the only employment data market participants will receive this week after the Labor Department announced it would not release nonfarm payroll data amid the government shutdown.

Share on StockTwits

What others are reading on Finances

Sorry. No data so far.


Iron FX 1.11156/1.11128 2.8
XM Markets 1.09948/1.09928 2
FxPro 1.10184/1.10171 1.3
FXCM 1.13943/1.13912 3.1