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Dollar And Yen Recovered As Debt Ceiling Standoff Hurt Sentiments

ByActionForex
Published 09/25/2013, 03:34 AM
Updated 03/09/2019, 08:30 AM
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The dollar and the yen are mildly higher as risk markets retreated on the US debt ceiling standoff. US Treasury Secretary Jacob $50 billion in cash by mid-October, and expectations that a deal could be reached to raise the debt limit is, "a bit greater than it should be". Yet Moody’s stated that neither an impasse over the debt ceiling nor a government shutdown should hurt the US sovereign credit rating. According to the agency, these events would affect the short-term outlook while, "the rating is based more on the long-term outlook for the debt, rather than what we think will be short-term events". Meanwhile, Moody's believed that the US would keep paying interest on Treasuries should there be a debt ceiling stalemate.

The New Zealand dollar is additionally pressured by weak trade data. Trade deficit unexpected widened to NZD -1191 million in August, comparing to expectation of NZD -700 million. That's also the largest deficit in five years. Exports dropped to the lowest level since September 2011 as hurt by the -1.8% yoy decline in dairy product exports. RBNZ noted the possibility of a 2014 rate hike earlier this month. But, today's data reminded traders that there's still a long way to go before the central make the decision and the outlook could change.

Elsewhere, Japan corporate service price index rose 0.6% yoy in August. Swiss UBS consumption indicator, German Gfk consume sentiment and UK CPI reported sales will be released in European session. And, US will release durable goods orders and new home sales.

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