Italian crisis could hammer the Euro + non-farm payroll release placed in jeopardy
- Written by: Gary Howes
However, this is a relatively minor event if we consider the political problems facing the US dollar and the Euro.
The issues are clearly spelt out by Jeremy Cook at WorldFirst. A must-view for currency market watchers and participants today:
Mike van Dulken, Head of Research at Accendo Markets, does however note that for now markets are remain calm:
"Equities pretty calm with passing of the US budget deadline and beginning of partial government shutdown.
"Brinkmanship going on for so long that the probability was high that neither party would budge. Nonetheless, it's Republicans (Congress) demonstrating worry about being blamed for shutdown, suggesting it might be they who give in with a revised proposition, leaving Obama's flagship Healthcare alone (it comes into effect today anyway, Republicans just wanted to delay), removing just the medical devices tax hike element - potentially enough for Democrats (Senate) to agree to.
"Nonetheless, for every hour than goes by without an agreement, the US takes a step closer to another stand-off on raising its debt ceiling to pay its bills.
"This is an altogether more worrying issue denting the USD (8-month lows), with appetite for the reserve currency falling as desire to own US debt (and need for USD to buy it) drops with the looming possibility of the US approaching the ceiling, ratings agencies downgrading the nation's credit or indeed the sovereign doing the unthinkable and actually defaulting on its debt."