14 Oct 2013
Risk off as markets wait for Congress to continue discussions
FXstreet.com (London) - Congress will today reconvene to discuss plans to temporarily extend the US debt ceiling. The government is not entering its third week of shutdown, and rapidly approaching the 17 October hard ceiling, after which the US will be unable to service its debts.
Senators will reconvene at 2pm EST and the House at midday, with no votes until 6:30pm EST.
Despite Republican leaders last week indicating that they would be prepared to support a short-term extension of the debt ceiling in exchange for a wide-ranging discussion over spending cuts, there has yet to be any concreted agreement.
Democrats have reiterated that the Senate will not pass anything it a "clean" bill - one that comes without spending cuts or policy riders attached.
Though congress is inching closer to a compromise agreement that would allow for a six-week extension to the debt ceiling, risk appetite remains absent from markets. USD/JPY has fallen 0.29 percent, with AUD/JPY down 0.41 percent.
With the Congress not beginning discussions until after European markets close, markets will remain subdued over the European session, supporting EUR/USD.
Senators will reconvene at 2pm EST and the House at midday, with no votes until 6:30pm EST.
Despite Republican leaders last week indicating that they would be prepared to support a short-term extension of the debt ceiling in exchange for a wide-ranging discussion over spending cuts, there has yet to be any concreted agreement.
Democrats have reiterated that the Senate will not pass anything it a "clean" bill - one that comes without spending cuts or policy riders attached.
Though congress is inching closer to a compromise agreement that would allow for a six-week extension to the debt ceiling, risk appetite remains absent from markets. USD/JPY has fallen 0.29 percent, with AUD/JPY down 0.41 percent.
With the Congress not beginning discussions until after European markets close, markets will remain subdued over the European session, supporting EUR/USD.