18, October 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The dollar rose against other major currencies, but fell against higher-yielding currencies such as the Australian dollar and South African rand, as Congress agreed to end shutdown of the U.S. government and decided to raise the debt limit.

The dollar may weaken as markets assess the impact of the recent impasse on economic growth and the prospects for the restriction of the stimulus by the Federal Reserve. The Australian dollar hit a four-month high before the Chinese today's report, which is to show that growth has accelerated in the last quarter. The yen fell against most major currencies, as the demand for refuge assets declined and Asian stocks began to rise.

" In a very short period of time, you will see the U.S. dollar under pressure," said Emma Lawson, senior currency strategist at National Australia Bank in Sydney. "There is some uncertainty because the transaction is effective now, but it creates a problem in the future ."