The dollar strengthened fractionally yesterday against most currencies, but remains weaker on the whole as we continue into October – a reliably jittery month on the financial markets.
The markets are keeping a close eye on the debt ceiling concerns, as a political stand-off builds between Democrats and Republicans over government financing, with a risk of government default if no agreement is reached.
On the whole, however, expectations that the Federal Reserve will taper monetary support for the economy, plus a relatively “risk-off” attitude to the global economy, are putting downward pressure on the dollar.
This afternoon we will see Markit PMI figures for the US, with speeches by monetary policymakers also with potential to move the market.
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