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7 Oct 2013
USD/JPY Yen continues to gain on dollar debt ceiling pressure
FXstreet.com (London) - The Yen is heading toward six-week highs on US debt ceiling concerns.
As we head into the second week of the partial US government shutdown, we have seen little in the way of progress from leaders of either party as congress remains in deadlock over an extension to the debt ceiling.
Republicans want any increase in the debt ceiling to be tied to a cut in government spending, with many pushing for a one-year delay in the implementation of President Obama’s controversial Affordable Care Act.
So far, Democrats have shown little inclination to budge, despite the 17 October hard ceiling, after which the US government will run out of its ability to borrow.
USD/JPY hit a session low of JPY96.8575 today, with the dollar still under pressure. The pair is down 0.32 percent so far today.
Although markets has initially priced in a swift resolution of the debt ceiling stand-off, both sides have now become even more entrenched, with a war of words this weekend between Republican House Speaker John Boehner and US Treasury Secretary Jacob Lew, with the latter saying that “Congress is playing with fire” over the debt ceiling.
As we head into the second week of the partial US government shutdown, we have seen little in the way of progress from leaders of either party as congress remains in deadlock over an extension to the debt ceiling.
Republicans want any increase in the debt ceiling to be tied to a cut in government spending, with many pushing for a one-year delay in the implementation of President Obama’s controversial Affordable Care Act.
So far, Democrats have shown little inclination to budge, despite the 17 October hard ceiling, after which the US government will run out of its ability to borrow.
USD/JPY hit a session low of JPY96.8575 today, with the dollar still under pressure. The pair is down 0.32 percent so far today.
Although markets has initially priced in a swift resolution of the debt ceiling stand-off, both sides have now become even more entrenched, with a war of words this weekend between Republican House Speaker John Boehner and US Treasury Secretary Jacob Lew, with the latter saying that “Congress is playing with fire” over the debt ceiling.