I read some articles saying that the US lawmakers agreed to extend the debt ceiling deadline. I’m curious, what does this mean for the dollar at least until the end of this year? Is it positive for the USD coz the shutdown is over?
[QUOTE=“marypippins123;552051”]I read some articles saying that the US lawmakers agreed to extend the debt ceiling deadline. I’m curious, what does this mean for the dollar at least until the end of this year? Is it positive for the USD coz the shutdown is over?[/QUOTE]
I don’t think there’s much affect , it’s just due to media frenzy for around the past 20 days. Markets seem to be calm. the us wants to increase their deficits and soon the US deficits would exceed .
Yeah, the market has been calm. There was a bit of contraction in gold and silver’s volatility yesterday, which usually heralds upcoming big movements, maybe today or tomorrow.
Here comes the USD…although it is expected that this will not go long.
Now we will get the same situation again in a few weeks, nothing has been resolved and the more you wait before you actually resolve an issue the harder it will get and the more work will be required. I think an increase in volatility should be expected.
Well it seems there are a lot of factors driving the dollar these days. Now that the shutdown/debt issue is over for now, focus is shifting back to fundamentals. And from what we saw in that September NFP release, it seems that traders are pricing against a taper this year. What do you guys think?
We won’t see a taper for a very long time and def not a reduction of QE. We will have QE for decades to come, at different amounts per month but we will not see an exit of it.
It was expected this would happen and that is why there has been such a small response from the markets. The only reason there would be a big impact on the markets is if someone important said that they would be prepared for the US to default on it’s debt (but that is very very unlikely to happen)