Forex Technical & Market Analysis FXCC Oct 01 2013
 

[b]Forex Technical & Market Analysis FXCC Oct 01 2013

The US government shutdown - truth or dare

Early in the overnight/early morning session we'll have received the RBA decision regarding the base rate for Australia, this will be accompanied by a statement concerning the decision, which is expected to keep the current rate at 2.5%. The U.S. government looks set for its first partial shutdown in over 17 years, with no signs of compromise from the Congress or the White House. The U.S. has had 17 funding gaps from 1977 to 1996. In 1995 and 1996, interruptions lasted from Nov 14th to Nov 19th and from Dec 16th to Jan 6th, as Republicans led by House Speaker Newt Gingrich clashed with President Bill Clinton. Equity index futures are down on the USA equity markets, the DJIA equity index future is down 0.98 at the time of writing, leaving the index at 15046, very close to the critical 15,000 level. SPX equity index future is down 0.62%. European equity index futures are mainly in the red, STOXX down 0.9%, FTSE down 0.79% and the DAX down 0.87%. The U.S. Dollar Index, tracking the performance of a basket of the 10 leading global currencies versus the dollar, fell for a second trading-day, declining by 0.1 percent to 1,011.85 late in the New York session, after weakening by as much as 0.2 percent. The yen was little changed at 98.30 per dollar after touching 97.50, the strongest level since Aug 29th. Japan