When the dollar is at an eight month low it means other currencies are gaining in value, whether their government wants them to or not. Forex news is alive with the partial government shutdown in the United States. After a week of trouble with such a move, there is still no resolution. The dollar fell against several currencies on Thursday and fell further on Friday due to the shutdown that is affecting the world economy. Most experts are still in hope that the shutdown will not last for a long time and that it will not affect the USA’s path to recovery. On the other side is trouble should the shutdown last until the last minute. If it goes on till the 16th rolls into the 17th, there will be huge repercussions on a global scale.
Forex News by Obama
Obama made an announcement Thursday to media and forex news sources. He stated that while a minimal impact is expected at the moment, there is significant worry that a longer delay in the government situation is going to yield major problems. With the holiday season coming up there is some hope for better numbers economically that might stave off the largest of the problems, but no one investing should be complacent. The U.S. is not going to taper the stimulus programme. Both this announcement and the shutdown have caused an eight month low for the USD. The biggest trouble for the party, Obama’s health care, is still the centre of attention in the debate. Yet, the programme was released on the 1st in which people could start to look for new healthcare plans and find supposedly lower costs. Republicans are trying to get it stopped. This has created the deadlock seen on Wednesday and continued through to Friday.
Forex news like this is not good for the USD which needs to gain, so that other currencies can lower in value and support their country better. Japan and Australia are two countries that need lower value currencies to help keep their countries stable. As usual if the USA has a huge issue it is going to affect the global economy. The degree of the effect is going to be dependent on how long the partial shutdown is in place.
Forex News for Yen, AUD, Euro
The Yen, Australian Dollar, and Euro all gained in value on Thursday and Friday. Forex news for the countries was good, but more importantly the USD was unable to hold against the troubles in the USA. It is going to continue sinking and get worse the longer things are held in limbo.
Right now there is a point of rally for the USD against these other currencies. It will take action to solve the debt-ceiling debate, but rather than action the USA is still blame calling. It has given all three major currencies a chance to gain in growth. For the EUR growth is not a bad thing, but for Japan’s yen and the Australian dollar forex news supports a lower value would be economically beneficial.
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