Investing.com- The U.S. dollar was spotted higher against all of its major rivals in Monday’s Asian session as traders continue to digest the fact that U.S. policymakers are running out of time to construction a fiscal cliff resolution.
In Asian trading Monday, EUR/USD was off 0.07% to 1.3181. The pair was likely to find support at 1.3156, Tuesday’s low, and resistance at 1.3308, Wednesday’s high.
The greenback was also seen higher against sterling as GBP/USD fell 0.02% to 1.6166. The pair was likely to find support at 1.6148, today’s low, and resistance at 1.6306, Wednesday’s high.
The move away from riskier currencies in Monday’s Asian session comes on the heels of a large loss for U.S. equities last Friday after House Speaker John Boehner’s so-called Plan B effort to avert the fiscal cliff was not even voted on because some congressional Republicans refuse to support tax increases of any kind. Boehner’s Plan B called for a tax increase for those Americans earnings more than $1 million per year while keep the current rates in place for all others.
Congress adjourned for the Christmas holiday last Thursday, escalating traders’ fears that U.S. policymakers will not be able to solve a possible budget crisis before the January 1, 2013 deadline.
At this point, it appears that the White House is willing to accept a small deal to avert the tax increases from going into effect on January 1, 2013. However, the caveat is that the President wants the small deal to set the stage for broader budget talks in the new year.
Congress is expected to come back into session Thursday December 27, leaving policymakers little time in which to strike any deal to avert the fiscal cliff. The deadline is January 1, 2013. Should that deadline be missed, scores of previously enacted tax cuts will become tax increases.
Elsewhere, the dollar regained some strength against the yen as USD/JPY added 0.17% to 84.41. USD/CHF gained 0.08% to 0.9169 while USD/CAD climbed 0.11% to 0.9169. In a sign that traders are avoiding riskier currencies on the back of fiscal cliff fears, AUD/USD slid 0.03% to 1.0398 while NZD/USD dropped 0.02% to 0.8231.
In Asian trading Monday, EUR/USD was off 0.07% to 1.3181. The pair was likely to find support at 1.3156, Tuesday’s low, and resistance at 1.3308, Wednesday’s high.
The greenback was also seen higher against sterling as GBP/USD fell 0.02% to 1.6166. The pair was likely to find support at 1.6148, today’s low, and resistance at 1.6306, Wednesday’s high.
The move away from riskier currencies in Monday’s Asian session comes on the heels of a large loss for U.S. equities last Friday after House Speaker John Boehner’s so-called Plan B effort to avert the fiscal cliff was not even voted on because some congressional Republicans refuse to support tax increases of any kind. Boehner’s Plan B called for a tax increase for those Americans earnings more than $1 million per year while keep the current rates in place for all others.
Congress adjourned for the Christmas holiday last Thursday, escalating traders’ fears that U.S. policymakers will not be able to solve a possible budget crisis before the January 1, 2013 deadline.
At this point, it appears that the White House is willing to accept a small deal to avert the tax increases from going into effect on January 1, 2013. However, the caveat is that the President wants the small deal to set the stage for broader budget talks in the new year.
Congress is expected to come back into session Thursday December 27, leaving policymakers little time in which to strike any deal to avert the fiscal cliff. The deadline is January 1, 2013. Should that deadline be missed, scores of previously enacted tax cuts will become tax increases.
Elsewhere, the dollar regained some strength against the yen as USD/JPY added 0.17% to 84.41. USD/CHF gained 0.08% to 0.9169 while USD/CAD climbed 0.11% to 0.9169. In a sign that traders are avoiding riskier currencies on the back of fiscal cliff fears, AUD/USD slid 0.03% to 1.0398 while NZD/USD dropped 0.02% to 0.8231.