08, October 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The dollar ended the week in a mixed way, but it may remain under some pressure while the opposition on the government shutdown continues.

The U.S. dollar started to recover its lost ground on Friday, in particular, against the pound and the euro, as the opposition of the U.S. government continues, and it is unlikely to end soon. Aud was good by the end of week, in the expectation that Washington will solve its budget issues and negotiations on the debt ceiling on October 17. Everything is very confusing! This week, the basic data are likely to be released in the ECB monthly report and Fed's minutes. Most of the other data from the U.S. will be most likely in the standby mode. There was Labor Day in China as a result we had a quiet Asian session.

In general, it may be a week of consolidation, with a higher offset of the dollar, which would mean a little more pressure to 1.3500 and possibly lower for the euro, with the added expectation that sterling and the Swiss franc may continue to weaken further, although in volatile trade.