EUR/USD (a 4-hour chart)
The threat of the U.S. Government termination against the fact that the U.S. budget negotiations stalled, actually pressed the market throughout the Monday and Tuesday sessions. As a result, the dollar fell against the Euro at the end of the day, and if the price of the euro has remained in the formed side band, the British pound was able to create a new local maximum. In the controversy with the yen "buck" was also under a pressure most of the time, but at the end of U.S. session it was able to offset the losses and end the day with a plus that can be attributed to the sharp rise in yields of "Treasuries."
Dollar is under pressure as investors focused on the possibility of stopping the U.S. government. But we are not talking about the growth of the Euro, but about the weakness of the dollar, that is, there is a battle among the weakest. The market is concerned about the U.S. government's first off in 17 years, since not a single question about the cost of the bill is approved. The probability of the shutdown is about 90%, according to surveys.
The European currency rose against the dollar in yesterday's session, but the reason for the popularity of euros is the fact that the States have budget problems, and because the situation in the eurozone is not conducive to sustained optimism, according to data published yesterday. As it turned out, the annual rate of inflation in Eurozone in September fell to its lowest level in three and a half years. Consumer prices in the countries of currency bloc in September fell to 1.1% y / y vs. 1.3% y / y in August.
The British pound continued its growth and it reached the new local highs against the dollar and the euro. It is obvious that the lack of a negativity on the part of the economy of the "islands" and the turmoil in the U.S. keep interest to the pound at a high level.