Deal or no deal? There is a deal in Washington, or is it really a deal?
Late hour deal in Washington. It was struck not out of principal, but because of a worst-case scenario. It is an “agreement, just to avoid default. It would have been disastrous, if there was no deal.
The positive news of an end to the debt ceiling impasse boosted the US dollar higher against most of its major peers.
Dollar/yen ended the US session at 98.81, up 0.6 percent. Earlier in the session the dollar hit a 3-week high of 98.95, the highest since September 27.
The euro ended the day flat, closing pretty much where it began at $1.3525. During the US session the pair had a volatile trade, swinging from highs of $1.3566 to lows of $1.3472. Sterling ended the day 0.3 percent lower versus the dollar at $1.5940.
Right now, the yen is at 97.85, the euro is at 1.37, and the pound is at 1.62. The weighted dollar index has dropped a little more than 1% today. This could just be statistical noise, or it could be the start of a new trend. I don't know.
I've been looking to see what the new debt ceiling is. Has anyone seen it? All I can find is the new date. Perhaps they (congress) are trying to wean themselves from the artificial ceiling by picking a date rather than a number.
I agree with Pierre that it is just a circus show. If it actually meant something, it would mean something. The system has fallen and it can't get up <reference to a television adverstisement>.