The U.S. dollar continues to remain weak despite the Weekly Unemployment Claims report indicated fewer than expected filed for benefits last week as traders focus on U.S. budget concerns.
Yesterday Democrats and Republican leaders along with President held a meeting to work out their differences resulting in a continued standoff with a solution unlikely in the immediate future.
Traders are watching political deadlock surrounding the raising of the debt ceiling as we rapidity approach the October 17th deadline in which U.S. Treasury Department is forecasting to run out of money.
Moody’s released a statement warning a failure by congress not to raise the debt ceiling would weigh on the financial markets more than a government shutdown.
Bottom Line: until congress can agree on a solution the U.S. dollar will remain under pressure and Japanese yen will benefit as traders seek out safety.