26, September 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The dollar rose against most major currencies, while U.S. stocks fell for a fourth day amid concerns over the budget negotiations, which carry risks to the federal government and lead to the slowdown in economic growth. New home sales jumped in August which is the sign that the housing market is beginning to adapt to a jump in the cost of funding. U.S. Dollar looked pretty good. Concern about negotiations in Congress over the U.S. debt ceiling seems to be one of the factors. The decline in the stock market strengthened the dollar.

The U.S. Senate is going to vote on the law passed by the House of Representatives to cover the costs of the federal budget on December 15 and strangle the funds for President Barack Obama on the "medical law". Senate Majority Leader Harry Reid said that the Senate did not approve the law defending health costs, resulting in increased prospect of continuing debate after September 30. The next fiscal year begins on October 1.

According to the Conference Board, consumer confidence fell in September, the University of Michigan said.

Consumers are nervous about the prospects for the U.S. economy, the financial problems in Washington and rising borrowing costs. Conditions of production stagnated in Richmond this month after rising rapidly in August, raising concerns about the sustainability of recovery in the sector. Case Shiller report showed slower growth in July, housing prices, but this was offset by a weak release of the report of the Federal Agency for housing finance that house prices rose the strongest pace in March.