The US dollar initially did try to rally a bit during the earlier part of the session on Wednesday but then fell significantly as we could not hang above the 200 day EMA for very long. We fell pretty significantly, but we are starting to see the US dollar find some value hunting. I think…
The AUD/USD exchange rate rose to the highest point since September 18 as the US government shutdown started and after the US published weak jobs numbers. It rose to 0.6620, up from last week’s low of 0.6520.
Risk aversion dominates financial boards on Wednesday, keeping the US Dollar (USD) under pressure and boosting demand for safe-haven Gold. The United States (US) government effectively shut down at midnight, as Republicans and Democrats failed to clinch a deal on a funding bill.
The USD/JPY pair extends last week’s retracement slide from the vicinity of the 150.00 psychological mark, or its highest level since August 1, and continues to lose ground for the fourth consecutive day on Wednesday.
GBP/USD continues to stretch higher and trades above 1.3470 in the European session on Wednesday, after posting modest gains on Monday and Tuesday. The pair’s technical outlook highlights a bullish stance as market participants keep a close eye on US politics.
Following Tuesday’s choppy action, EUR/USD edges higher and clings to small daily gains, slightly above 1.1750, in the European session on Wednesday. Investors will keep a close eye on political developments in the US and scrutinize the data releases.