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The U.S. dollar got hammered after the U.S. signed an interim agreement on the budget

October 18, 2013, Friday, 06:53 GMT | 01:53 EST | 10:23 IST | 12:53 SGT
Contributed by Forex-Metal

Asian and European trading sessions:

Euro: The euro jumped to a new 8 - month high against the dollar, despite announced agreement on the U.S. budget, in which the government will be funded until January 15, and the extension of the debt ceiling will be increased until February 7. The EUR / USD pair rose to $ 1.3665 during the European session

U.S. Dollar: In addition, the pressure on the U.S. currency also had a message saying that today the Chinese rating agency Dagong announced its decision to downgrade the U.S. credit rating by one position to A- from A, leaving a negative outlook. The agency, in its decision, referred to concerns about the country's ability to solve the problem of the debt crisis, as well as the damage done to the economy by long government’s “shutdown ".

British Pound: The pound rose sharply against the dollar, which was helped by the publication of data by the Office for National Statistics. Accordingly report, the volume of retail sales of last month rose moderately, helped by higher sales and thereby exceeded the forecasts of experts. According to the report , the September volume of retail sales increased by 0.6 % ( on a monthly basis ), which followed a decline of 0.8 % in the previous month. Many experts believed that this figure will rise to 0.5 %. In addition, the annualized retail sales rose last month by 2.2 %, compared with a gain of 2.1 % in August, and the experts' forecasts were at 2% increase. The Office for National Statistics reported that the sales of furniture accounted for half of the total monthly rise, making it possible to add about 0.3 percentage points. The data also showed that with the exception of fuel, total sales rose by 0.7 % between August and September and by 2.8 % compared with September 2012. The GBP / USD pair rose to $ 1.6120 during the European session.

Japanese Yen: The yen fell after the U.S. Senate voted 81 - "for", and “18" ??- against the order to stop the 16 -day shutdown of government and raise the U.S. debt ceiling. The USD / JPY pair fell to Y97.80 during the European session.

American trading session:

U.S. Dollar: The U.S. dollar got hammered by the strong downward pressure after the U.S. signed an interim agreement on the budget, it has agreed the day before. This has forced traders and investors to reconsider their predictions as to when the U.S. Federal Reserve will begin to phase out its program to stimulate the economy - at least in 2014. The market participants considered this decision as short-lived, because as less than 3 months later the Americans will have to solve the fundamental problem of the new spending and the budget deficit.

Gold: The value of gold has shown strong growth while the dollar fell, as the vague situation around the U.S. debt limit would prevent the growth and trigger the Fed to delay reduction programs stimulate the economy. The cost of the December gold futures rose to $ 1323.90 per ounce on COMEX today.

Oil: The cost of the November futures of WTI oil brand fell to $ 100.00 a barrel on the NYMEX. The oil fell after a report of the American Petroleum Institute (API) reported an increase in inventories last week.