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Forex - Dollar mixed as traders watch government negotiations

Published 10/14/2013, 10:08 PM
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Investing.com - The U.S. dollar was mixed against its major rivals during Tuesday’s Asian session as traders monitored news out of Washington, D.C. regarding the possibility of an announcement that will reopen the government.

In Asian trading Tuesday, EUR/USD fell 0.05% to 1.3555. Data released on Monday showed that industrial production in the euro zone rose 1.0% in August, beating market calls for a 0.8% increase, which gave the euro added support.

Later Tuesday, , the ZEW Institute is to release its closely watched report on German economic sentiment, a leading indicator of economic health, as well as data on economic sentiment in the wider euro zone. The euro zone is to release official data on industrial production.

USD/JPY lost 0.11% to 98.48. Japanese markets reopened Tuesday after being closed Monday for a public holiday and it appears the yen is again being embraced as a safe-haven alternative to the greenback.

GBP/USD inched up 0.02% to 1.5985. World finance ministers and central bank heads in Washington for the annual meeting of the International Monetary Fund and World Bank over the weekend called for “urgent action” to break the deadlock, warning of the negative impact on the global economic recovery.

There is talk that the two U.S. political parties will announce an agreement to reopen the government later Tuesday, which could breathe some life into riskier currencies.

USD/CHF rose 0.08% to 0.9110 while USD/CAD fell 0.13% to 1.0340. The government in the world’s largest economy is the midst of its first shutdown since the 1990s and fears are high the shutdown will not end before October 17, the day the debt ceiling must be extended or the U.S. risks its first ever sovereign debt default.

AUD/USD climbed 0.41% to 0.9528 ahead of the release of minutes from the Reserve Bank of Australia. NZD/USD rose 0.28% to 0.8382. The U.S. Dollar Index inched up 0.03% to 80.41.


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