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1 Oct 2013
GBP/USD is spiking as the Senate votes down the House spending bill
FXstreet.com (Athens) – The GBP/USD has been trading higher since the early Asian’s opening on Sunday, as US Congress has pushed the world's largest economy to the verge of a government shutdown.
GBP/USD in chasing of 2013 high as of 1.6381 as the American dream “defaults”
With the federal government on the verge of a crippling shutdown (i.e. many government services and agencies would be closed, suspended or otherwise impacted), the cable found the uptrend momentum to move higher. Thus, we revive again the political show off drama of the debt-ceiling; in fact, the potential US default on its own debt gathers more pace, as an increasingly partisan of US congress leads seems to be in strongly opposition with lifting the debt-ceiling. Therefore, the US is facing a government shut-down for the first time in 17 years (last time was 1996). Taken for granted, that earlier news wires mentioned that “U.S. Senate rejected House amendments delaying “Obama care”, sending debate back to the House” and while there are just 15 minutes left in order to reach an agreement, it is more than probable that the US government will close. Traders should in any case bear in mind, that especially after solid UK data seen today, BoE officials may adopt a more hawkish tone for monetary policy committee at the 10th of October, as Mark Carney, Paul Tucker, and Paul Fisher are scheduled to speak in the forthcoming days.
Technical outlook on GBP/USD
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “GBP/USD seems to have found short term support at 1.5954. While a weekly TD perfected set up exists and the 2009-2013 downtrend at 1.6331 directly overhead caps, the risk remains on the downside.”
GBP/USD in chasing of 2013 high as of 1.6381 as the American dream “defaults”
With the federal government on the verge of a crippling shutdown (i.e. many government services and agencies would be closed, suspended or otherwise impacted), the cable found the uptrend momentum to move higher. Thus, we revive again the political show off drama of the debt-ceiling; in fact, the potential US default on its own debt gathers more pace, as an increasingly partisan of US congress leads seems to be in strongly opposition with lifting the debt-ceiling. Therefore, the US is facing a government shut-down for the first time in 17 years (last time was 1996). Taken for granted, that earlier news wires mentioned that “U.S. Senate rejected House amendments delaying “Obama care”, sending debate back to the House” and while there are just 15 minutes left in order to reach an agreement, it is more than probable that the US government will close. Traders should in any case bear in mind, that especially after solid UK data seen today, BoE officials may adopt a more hawkish tone for monetary policy committee at the 10th of October, as Mark Carney, Paul Tucker, and Paul Fisher are scheduled to speak in the forthcoming days.
Technical outlook on GBP/USD
Karen Jones, Head Technical Analyst at Commerzbank suggests that the “GBP/USD seems to have found short term support at 1.5954. While a weekly TD perfected set up exists and the 2009-2013 downtrend at 1.6331 directly overhead caps, the risk remains on the downside.”