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.

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.

Key Announcements: 

10.00am
– EUR – Industrial Production (Aug): Rose higher to 1%.