16, October 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

World stock markets and oil prices jumped on news that the President Barack Obama and leaders of Congress are trying find the way out of the deadlock.

The absence of an expected deal over the weekend to prevent a looming U.S. default is October 17 put some pressure on global markets and kept the dollar under the pressure.

U.S. Senators said that they were close to a deal that would re-open government and postpone a possible default for a few months, but many obstacles remained unsolved.

The dollar fell in the first half of the day with respect to 11 of the 16 most- traded currencies as U.S. lawmakers did not resolve the political impasse on the debt limit increase of the country and the partial shutdown of the government.

The dollar regained its losses, especially against the yen after the President Barack Obama called congressional and Democratic leaders of the Senate and the Republicans said they were optimistic to reach an agreement.