EUR/USD (a 4-hour chart)
The U.S. dollar rose against most opponents on Thursday, but shares were trading subdued, as fiscal uncertainty has overshadowed economic data in Washington.
The U.S. government will reach the debt limit on October 17, Finance Minister Jacob Lew said on Wednesday. The United States will not be able to borrow money to pay the bills without an increase in the debt limit. At the same time, Congress is trying to avoid a partial government shutdown next week.
The dollar index ICE DXY, which measures the greenback against a basket of six currencies, rose to 80,521 from 80,320 on Wednesday night. The dollar index WSJ XX: Buxx, which uses a wider basket, rose to 72.96 from 72.77.
Jean-Claude Trichet, a former president of the European Central Bank, deftly parried several proposals to predict the recent actions of the Federal Reserve System, referring to the wisdom of the "mutual admiration" among the world's central banks. But he said the "landmark should be best left for interest rate policy." He means there must be fewer conditions on emergency measures such as quantitative easing - taking into account that the Fed's QE puzzled markets.
John Lipsky, a former first deputy managing director of the International Monetary Fund, said that it was not clear what impact QE3 had had on basic economies. But the market reaction to a potential restriction of QE3 was so powerful that it seems that QE3 and the threat of its gradual removal is more powerful and important than it actually is.