Investing.com - Financial Markets Worldwide

NBC Daily Forex : October 03, 2013

ByThe National Bank of Canada
Published 10/04/2013, 02:04 AM
Updated 05/14/2017, 06:45 AM

International financial markets were mostly down yesterday, the second day of the U.S. government shutdown. In an interview with CNBC yesterday, President Obama stated that investors should be worried and that the current situation will have a significant economic impact. Unless the debt ceiling is increased soon, the U.S. government will default on its payments on October 17.

Meanwhile, the euro is trading at an 8-month high against the greenback. At the ECB meeting, Mario Draghi said the eurozone's economic recovery remains fragile and the downside risk remains. In this context, the area's inflation is under control and the ECB is maintaining its accommodating monetary policy. Draghi is also open to other liquidity injections, but warned that these liquidities should not be used as a crutch in the long term. The euro is now up by 13% since the July 2012 low of 1.2043.

We are watching the Central Bank of Japan, which will be holding its monetary policy meeting. No major announcements are expected despite the tax increase announced earlier this week by President Shinzo Abe. In economic news, Initial Jobless Claims and ISM Non-Manufacturing PMI Index figures will be released at 10 this morning. Emmanuel Tessier-Fleury

Range of the day: 1.0290-1.0385

INITIAL JOBLESS CLAIMS

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