Rumors are swirling about a possible deal to end the current partial government shutdown and even raise the debt ceiling in the United States. The shutdown has been in place since the beginning of October, and the borrowing authority of the US Treasury is expected to run out on October 17. However, there are hopes that the situation is on the verge of being resolved, and that is giving the greenback a boost.
While nothing has been officially announced just yet, there are rumors that Congressional leaders are making deals about what can be done to end the partial government shutdown, and to avoid a debt ceiling debacle. There has been a lot of political rhetoric in the last two weeks, and a lot of grandstanding. Now, though, with almost the entire world coming down on the United States, and with another US recession threatening — not to mention another global recession possible — it appears that US leaders are ready to move forward.
This has the US dollar gaining ground for now. Greenback is higher against its European currencies, as well as gaining against other currencies.
At 13:35 GMT EUR/USD is down to 1.3497 from the open at 1.3562. GBP/USD is down to 1.5947 from the open at 1.5983. USD/JPY is down to 98.4870 from the open at 98.5795.
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