Christian Debt Recovery

What Is The Debt Ceiling 2011

April 10th, 2010 |

Author: Gavin

what is the debt ceiling 2011

AceTrader-Daily Market Outlook -26-7-2011

Market Review – 25/07/2011 21:59 GMT

Dollar falls on U.S. debt ceiling impasse

The greenback tanked to a fresh lifetime low against the Swiss franc and hit a 4-month low versus the Japanese yen on Monday due to an impasse on raising the U.S. debt ceiling, spurring demand for the safe-haven currencies.

The greenback opened sharply lower against the Swiss franc and nose-dived to 0.8100 on dollar’s broad-based weakness together with active cross buying in chf (eur/chf tumbled from 1.1715 to 1.1518) due to worries over the U.S. debt ceiling . Despite dollar’s brief recovery to 0.8156 in Asian morning, renewed selling there pressured the pair and price tumbled below previous low of 0.8034 to a fresh lifetime low of 0.8021 in European session before stabilising.

Versus the Japanese yen, although the greenback recovered fm 78.12 (NZ) to 78.56 in Asian morning on short-covering, renewed selling sent the pair to a new 4-month low of 78.06 in European morning but price later rebounded to 78.42 in NY morning due to cross selling of yen vs other currencies before retreating again.

Although the single currency opened higher and climbed briefly to an intra-day high of 1.4417 (NZ) on dollar’s broad-based weakness due to continuing wrangling over U.S. debt ceiling, price edged lower to 1.4329 in European morning. Later, despite euro’s retreat from 1.4407 to 1.4325, buying interest above 1.4324 support lifted the single currency to 1.4394 in NY afternoon.

Earlier in Asian midday, the single currency was pressured as Moody’s downgraded Greece to Ca from Caa1 with a developing outlook and Moody’s said the country still faced serious medium term solvency challenges.

The British pound rose marginally above last Friday’s high of 1.6341 to 1.6345 in NZ due to dollar’s weakness. However, cable edged lower in tandem with euro and then weakened to 1.6262 in European morning before recovering to 1.6315 in NY afternoon.

Data to be released on Tuesday include:

New Zealand Exports, Imports , Trade balance (nzd) , Japan CSPI, China Leading Index, Germany Gfk consumer confidence, U.K. Nationwide hse prices, GDP, U.S. SnP/CS home price, Consumer confidence, Richmond Fed Manuf., New home sales.

Daily Technical Outlook on EUR/USD by AceTrader

EUR/USD – 1.4374… Y’day’s intra-day choppy sideways move in the euro
had made trading pretty tricky as despite opening higher in NZ due to standoff
in the U.S. debt ceiling talk, selling quickly emerged at 1.4417 n pushed the
single currency lower to 1.4329 in European morning, although the pair rebounded
to 1.4406, another wave of selling pressured euro to 1.4325, just one tick abv
Fri’s low of 1.4324 b4 another rebound was seen in U.S. afternoon.
. Looking at the bigger picture 1st, as technical indicators are turning
higher, suggesting consolidation with upside bias remains for recent rise fm
July’s 4-month low of 1.3838 to head twd ‘dynamic’ res at 1.4519, being 61.8% r
of the MT erratic fall fm May’s 1.4940 high to 1.3838, however, a breach of
daily res at 1.4580 is needed to retain bullish prospect of further headway twd
next chart obj. at 1.4696 (Jun 07) in August.
. Today, as long as sup at 1.4324 (Fri’s reaction low) holds, upside bias
remains for re-test of 1.4440, abv wud extend marginally twd 1.4475 but 1.4500
shud hold. A daily close below 1.4324 wud risk retracement to 1.4278, 1.4227.

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