The dollar slipped in overnight trade as talks between President Barack Obama and House Republicans continued to stall after Obama rejected calls t and U.S. senators from both parties struggled to draft an accord that would avert a U.S. default.
Senate leaders have yet to reach an agreement on how to end the U.S. fiscal impasse with mounting concern in financial markets three days before the government’s borrowing authority lapses.
Senate Majority Leader Harry Reid said yesterday that he had a “productive conversation” with Minority Leader Mitch McConnell without reaching a conclusion on a plan to send to the Democratic controlled chamber for a vote.
While optimism also was expressed by Democratic and Republican senators on Sunday television talk shows, there was little evidence to support their words as the government’s partial shutdown entered its third week and the markets are weighing the short time left to avert a U.S. default.
Looking ahead to the week; the US will be in focus with the US debt ceiling lapsing on Thursday. UK unemployment, retail sales and inflation will be of focus and from the euro zone; markets will be eyeing up the German ZEW survey of economic sentiment as well as their latest inflation figures.
There is little for markets to focus on today with only euro zone industrial production due for release. With the US still in shut down and the nation celebrating Columbus Day, there is no data due for release in the afternoon.
10.00am – EUR – Industrial Production (Aug): Rose higher to 1%.