Good day forex traders and readers.
As we approach the end of the trading week. We are seeing US dollar strength in the markets.
In the previous EUR/USD forecast we noted that the 1.36 line is usually a strong support. Uncertainty surrounds the markets with regards to the US government shut down and debt ceiling.
Looking at the EUR/USD 4 hourly chart above we note that the currency pair faces an immediate support at the region of 1.3480.
Read more from Bloomberg :
The dollar strengthened against the yen for a third day, the longest run of gains in a month, amid signs U.S. lawmakers may reach a compromise to avert an unprecedented default.
The Bloomberg U.S. Dollar Index touched a two-week high as congressional leaders were said to be open to a short-term increase in the nation’s debt limit. The greenback briefly pared its gain versus the yen after U.S. jobless claims last week rose more than forecast. The Swedish krona and Norwegian krone slid as reports showed inflation pressures eased in the Nordic economies, cooling bets that interest rates will have to rise.
“Both parties are aware that it’s not in anybody’s best interest for the U.S. to default on its debt,” Sireen Harajli, a foreign-exchange strategist at Mizuho Bank in New York, said in a phone interview. “It looks like we are going to avoid the situation where we’ll see an actual default, which is giving the dollar relief.”
The greenback climbed 0.8 percent to 98.13 yen at 10:24 a.m. New York time, set for a three-day gain that would be the longest run since Sept. 5. It touched 98.23 yen, the highest since Oct. 1. The dollar was little changed at $1.3531 per euro. The Japanese currency weakened 0.7 percent to 132.61 per euro.
The Bloomberg U.S. Dollar Index, which tracks the greenback against 10 major peers, touched 1,015.74, the highest since Sept. 27, before trading at 1,013.98. Nordic Currencies
Norway’s krone fell against all of its 16 most-traded counterparts as underlying inflation in the country slowed more than analysts estimated in September to 1.7 percent. The currency declined 0.9 percent to 8.1818 per euro and touched 8.2037, the weakest since Nov. 29, 2010.
The Swedish krona dropped versus most major currencies as a report in Sweden […]