09, October 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The euro rose despite the report that showed that the euro zone business activity fell in October after rising to a record level in the previous month. The U.S. dollar remains close to the eight-month low.

The U.S. dollar is under the pressure of the partial U.S. Government shutdown and the program of quantitative easing by the Federal Reserve System. This situation is bearish for the U.S. dollar in terms of difference in interest rates.

It is expected that the U.S. dollar will fall further from the current levels. There are fears that from the cost of deadlock lawmakers will move to a potentially dangerous battle on how to increase the debt ceiling $ 16700000000000, which will be met on October 17.

According to the Congressional Budget Office, the United States will not have enough money to pay their bills in the period from 22 October to the end of the month without a decision of the Congress.
A further decrease in prices is expected, to the extent that, as we approach the October 17 - the term of the debt ceiling.

Minutes from the last meeting of the Federal Open Market will be released on Wednesday.