EUR/USD (a 4-hour chart)
The US Treasury announced that it may quickly become out cash if the debt ceiling will not be raisen until October 17. Officials have warned that failure to raise it can trigger a financial crisis and to direct 1-th largest economy in the world into recession, with devastating effects that will be felt around the world.
But this risk retreated Thursday as Republicans presented a plan to extend the ceiling, opening the door for negotiations with the White house. Republicans want to use the situation as a lever to force the White house to agree on budget cuts or changes to the Law of Obama's health.
Potential increase in the debt limit the USA led to a significant reduction of gold.
Senior officials of the G20 leading economies have focused on receding risk of default of the USA at negotiations on Friday, as increased hopes that Washington will soon be able to solve the issue of provision of the transaction and continue to pay the bills.
Political deadlock in the US may be protracted, and may lead to major sales USD, in particular against the currencies of security zones, such as the JPY, CHF and even the Euro. For traders this will create a win-win situation, at least for a short time.