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12 Dec 2013
Session Recap: Unbeatable Euro trades above 1.3800 against USD
FXstreet.com (San Francisco) - The Euro advanced for seventh day in a row against the US Dollar on Wednesday as the USD seems immune to the US good news but paying attention to the bottom line.
As FXstreet.com's Valeria Bednarik commented in a recent report: In the new congress deal "there will be no extension in unemployment benefits for longer than 26 weeks. That means that by the end of December, more than one million individuals will be off benefits; and while the deal requires newly hired federal workers, it will no doubts increase the government charge, so the deficit reduction may not be that clear after all."
In addition, market is speculating over the provisional budget deal in Washington as fuel for the Fed's cuts in stimulus program as soon as next week.
In this framework, the EUR/USD rallied for seventh day to trade at 6-week highs at 1.3810. The pair found selling orders at this level as protection of the 1.3830 highs and later in the day the Euro was down below the 1.3800. Finally, the EUR/USD closed the day at 1.3785.
The GBP/USD felt vertigo at 1.6460 with the Cable falling all day long to 1.6350 where it bounced to close later at 1.6370. The USD/JPY declined for second day to close the session at 102.40.
Main headlines in the American session:
Budget deal ups odds of Fed taper
US Monthly budget shows a 135.2B deficit in November
No changes in 2.5% RBNZ rate but hints for possible hikes
S&P may raise US GDP forecast on budget deal
Wall Street has biggest decline in over a month
As FXstreet.com's Valeria Bednarik commented in a recent report: In the new congress deal "there will be no extension in unemployment benefits for longer than 26 weeks. That means that by the end of December, more than one million individuals will be off benefits; and while the deal requires newly hired federal workers, it will no doubts increase the government charge, so the deficit reduction may not be that clear after all."
In addition, market is speculating over the provisional budget deal in Washington as fuel for the Fed's cuts in stimulus program as soon as next week.
In this framework, the EUR/USD rallied for seventh day to trade at 6-week highs at 1.3810. The pair found selling orders at this level as protection of the 1.3830 highs and later in the day the Euro was down below the 1.3800. Finally, the EUR/USD closed the day at 1.3785.
The GBP/USD felt vertigo at 1.6460 with the Cable falling all day long to 1.6350 where it bounced to close later at 1.6370. The USD/JPY declined for second day to close the session at 102.40.
Main headlines in the American session:
Budget deal ups odds of Fed taper
US Monthly budget shows a 135.2B deficit in November
No changes in 2.5% RBNZ rate but hints for possible hikes
S&P may raise US GDP forecast on budget deal
Wall Street has biggest decline in over a month