EUR/usd
The negotiations on Capitol Hill have stalled. The traders, who hoped that an agreement would have been reached by Monday, are now utterly disappointed, which results in a stock market correction after the heavy growth at the end of the previous week. See how phantom the reasons for recent growth of stocks have been – it's been based only on the suppositions of progress, without any real evidence of such. So don't be surprised if in the coming hours you will be a witness of no less impressive retracements. The politics is quite a phantom and unsteady thing. The economic stats would be by far more reliable. However, because of the political crisis the markets feel the deficit of economic information about the USA, so investors can't decide what they should do – sell or buy. What they have made out for sure is that risks rest with the dollar, so risk-aversion looks like selling in the US exchanges alongside with selling of the dollar. This week has started with growth of the single currency to 1.3560, taking into account that last week was closed out 20pips lower. At the same time S&P 500 Index Futures easily gave back all its gains at the end of trading and returned to Friday's open. Today we will also have to do without vital economic statistics. The EU Industrial Production data are of some interest, but frequently they don't cause any shifts in the currency market.
GBP/USD
The British currency is also trying to seize the moment and grow against the dollar. Now it doesn't quite succeed in this as the pair is at the lows of late September and messed up Friday's attempt to return above 1.6000. The British government keeps searching for the ways to attract money into the national business. Finance Minister Osborne let Chinese businessmen enter the country with a Schengen visa only. Is this a turn for greater openness of Britain or a gesture of despair? Time will show. And now we only see the sterling enjoy little demand while the dollar is suffering troubles. Apparently, it's the fatigue from the previous rally.
USD/JPY
Many treat the yen as a good alternative to the US currency now. usdjpy “remembered” an old direct correlation with stock exchanges, where worsening of the mood caused purchases of the Japanese currency. Anyway, the drop to 98.12 on the daily open didn't break the uptrend of the recent days. We still believe in growth of the pair.
gold
Things look blue with Gold. On Friday (on expectations of the resolution of the US political crisis) this instrument dropped by 30 dollars for less than 15 minutes. Thus, the local low made 1260. Opening of the week didn't help much. Gold grew to 1278 for a while, but soon was pushed down to 1270. We still can see the Gold bubble go down. Though now it is going on very-very slowly.
