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8 Oct 2013
USD/JPY continues to gain on debt ceiling speculation
FXstreet.com (London) - USD/JPY has been the bellwether pair of the US debt ceiling stand-off, with the yen strengthening into any fears that Congress will fail to pass a bill to extend the limit before October 17.
Today has seen the yen falling from its eight-week highs on speculation that there will be a breakthrough in the deadlock that has led to the first US government shutdown in 17 years.
But despite market sentiment, there seems to be little in the way of reassuring language coming from The Hill. Republican House Speaker John Boehner has maintained that the House will not pass a “clean” debt limit extension bill, ie. one that does not include provisions for a cut in federal spending. However, the Democrat-controlled senate will not approve anything that comes with policy riders, particularly that would delay the implementation of the Affordable Care Act.
Treasury Secretary Jacob Lew has warned that congress is “playing with fire” over the debt ceiling. He will answer questions about the debt ceiling in front of the Senate Finance Committee, on Thursday, which pay present an opportunity for Republicans to ascertain areas of potential compromise.
USD/JPY has gained 0.46 percent so far today, after touching a session high of JPY97.2415.
Today has seen the yen falling from its eight-week highs on speculation that there will be a breakthrough in the deadlock that has led to the first US government shutdown in 17 years.
But despite market sentiment, there seems to be little in the way of reassuring language coming from The Hill. Republican House Speaker John Boehner has maintained that the House will not pass a “clean” debt limit extension bill, ie. one that does not include provisions for a cut in federal spending. However, the Democrat-controlled senate will not approve anything that comes with policy riders, particularly that would delay the implementation of the Affordable Care Act.
Treasury Secretary Jacob Lew has warned that congress is “playing with fire” over the debt ceiling. He will answer questions about the debt ceiling in front of the Senate Finance Committee, on Thursday, which pay present an opportunity for Republicans to ascertain areas of potential compromise.
USD/JPY has gained 0.46 percent so far today, after touching a session high of JPY97.2415.