Market Snap-Shot (MSS):DXY EUR GBP

Now that an initial resolution have been agreed upon, the market has shifted its attention to what actually made the market moved. As every single trader and analyst has been fixated on Washington, the market practically was likewise on a stalemate. And only now have made some dramatic moves simply based on several key factors. Listed below are the main bullet points that basically affected the decline in the USD as measured by the index registering a low @79.60 basis point.

Market Snap-Shot: DXY EUR GBP

Market Insight: Majors & Crosses 4

DXY EUR GBP & AUDJPY : 

The current talks of negotiations by both parties in Washington on the government shutdown and debt-ceiling extension have provided some relief recovery for the US Dollar. As there is still no sure fire agreements made, at least the reconciliatory meetings have likewise given some serious representatives that playing with fire nearing the debt ceiling cliff would send wrong signals to a prolonged market stalemate. 

Considering price action in the financial and equities market, the USD Index have recovered from the recent low @79.63 basis point and ended the week slightly higher @80.40. A slow yet cautious price action can be seen across the foreign exchange market, where skeptic investors have seen short-term trade set-ups relative to what each currency pair can only offer. A USD bullish call can only be reflected beyond the 50% Fibonacci retracement level @81.50. And a stronger catalyst should be able to do so from a certain market direction coming from Washington, unless a counter-trend would be reported unexpectedly from the Eurozone. Click here to continue