Investing.com - The U.S. dollar traded lower against most of its major rivals during Asian trading Monday as the U.S. government shutdown stretched onward, leading to elevated concerns about the looming debt ceiling deadline.
In Asian trading Monday, EUR/USD rose 0.11% to 1.3556. Later Monday, the euro zone will release data on industrial production. Some U.S. markets are closed Monday for the Columbus Day holiday, but equity markets are open.
USD/JPY slipped 0.28% to 98.28 as traders again embraced the yen as a safe-haven alternative to the U.S. dollar due to the ongoing turmoil in Washington, D.C.
While policymakers from both parties are looking to craft a deal to reopen the government, some traders are growing skittish that such an agreement will not arrive in enough to avert debt ceiling debacle. The U.S. must raise the debt ceiling by October 17 or risk defaulting on its sovereign debt obligations.
The U.S., which does not have an AAA credit rating, has never defaulted. China and Japan, among other major holders of U.S. Treasuries, are putting some pressure on the U.S. to solve the debt ceiling, but the government must be open to achieve that goal. Japanese markets are closed Monday for a public holiday.
GBP/USD added 0.13% to 1.5968. In the week ahead, U.K data on employment and retail sales will be in focus as markets attempt to gauge the strength of the economic recovery.
USD/CHF slid 0.22% to 0.9102 while USD/CAD rose 0.10% to 1.0369 as oil prices traded lower. Canadian markets are closed for a holiday.
AUD/USD fell 0.26% to 0.9442 after China, the world’s second-largest economy said September exports contracted 0.3%, well below analysts’ estimates of growth of 6%. Imports rose 7.4%. China’s September inflation and producer price index (PPI) data are due out later Monday.
Elsewhere, the Australian Bureau of Statistics said that Australian home loans fell 3.9% last month after a 2.1% rise in August. Analysts expected a September decrease of 2.5%.
NZD/USD fell 0.05% to 0.8319 while the U.S. Dollar Index dropped 0.08% to 80.43.
In Asian trading Monday, EUR/USD rose 0.11% to 1.3556. Later Monday, the euro zone will release data on industrial production. Some U.S. markets are closed Monday for the Columbus Day holiday, but equity markets are open.
USD/JPY slipped 0.28% to 98.28 as traders again embraced the yen as a safe-haven alternative to the U.S. dollar due to the ongoing turmoil in Washington, D.C.
While policymakers from both parties are looking to craft a deal to reopen the government, some traders are growing skittish that such an agreement will not arrive in enough to avert debt ceiling debacle. The U.S. must raise the debt ceiling by October 17 or risk defaulting on its sovereign debt obligations.
The U.S., which does not have an AAA credit rating, has never defaulted. China and Japan, among other major holders of U.S. Treasuries, are putting some pressure on the U.S. to solve the debt ceiling, but the government must be open to achieve that goal. Japanese markets are closed Monday for a public holiday.
GBP/USD added 0.13% to 1.5968. In the week ahead, U.K data on employment and retail sales will be in focus as markets attempt to gauge the strength of the economic recovery.
USD/CHF slid 0.22% to 0.9102 while USD/CAD rose 0.10% to 1.0369 as oil prices traded lower. Canadian markets are closed for a holiday.
AUD/USD fell 0.26% to 0.9442 after China, the world’s second-largest economy said September exports contracted 0.3%, well below analysts’ estimates of growth of 6%. Imports rose 7.4%. China’s September inflation and producer price index (PPI) data are due out later Monday.
Elsewhere, the Australian Bureau of Statistics said that Australian home loans fell 3.9% last month after a 2.1% rise in August. Analysts expected a September decrease of 2.5%.
NZD/USD fell 0.05% to 0.8319 while the U.S. Dollar Index dropped 0.08% to 80.43.