EUR/USD Update – U.S. Stocks Rise as Data Overshadow Budget Impasse

Good day forex traders and readers.

With the better than expected economic data from the US, we are seeing some bullish uplift for the US dollar. With the US debt ceiling issue in question, we may also start to see some risk aversion. Read more about the positive economic releases below :

New York Stock Exchange

U.S. stocks rose, halting the longest slump this year for the Standard & Poor’s 500 Index, as data showing growth in the world’s largest economy overshadowed concern that a budget impasse could hurt the recovery.

Bed Bath & Beyond Inc. (BBBY) gained 5 percent after raising the low end of its earnings forecast. Apple Inc. added 1 percent as Morgan Stanley said iPhone demand is “tracking significantly ahead of expectations”. Eli Lilly & Co. fell 2.2 percent after its experimental drug ramucirumab failed to meet its goals for treating breast cancer in a late-stage trial. Hertz Global Holdings Inc. sank 12 percent after cutting its forecasts.

The S&P 500 (SPX) climbed 0.6 percent to 1,702.53 at 10:02 a.m. in New York . The Dow Jones Industrial Average gained 94.41 points, or 0.6 percent, to 15,367.67. Trading in S&P 500 stocks was 13 percent below the 30-day average at this time of day.

“What we’re seeing is the fundamentals keep marching forward in the U.S.,” Douglas Cote, chief market strategist at ING U.S. Investment Management in New York, said in a telephone interview. His firm oversees $190 billion. “The market is becoming less concerned that we’re going to get a government shutdown.”

The S&P 500 has declined 1.9 percent in the past five days, retreating from an all-time high on Sept. 18, when the Federal Reserve refrained from reducing the pace of stimulus. Investors have been watching economic reports to help determine whether growth is sufficient for the central bank to begin reducing its monthly bond purchases at its next meeting in October. GDP Report

Data today showed the economy expanded at faster pace in the second quarter from the previous three months, with gross domestic product rising at a 2.5 percent annualized rate, the Commerce Department said. […]

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