Flash: US dollar supported on us Budget agreement-BTMU

FXstreet.com (Barcelona)-Derek Halpenny, European head of currency strategy at the Bank of Tokyo Mitsubishi UFJ notes that the most recent support for the dollar came from news that the House passed the American budget pact agreed last night – and with ease; by 332-94 votes.

Key quotes

"So in the next few days we may well get some clarity on the sources of political uncertainty in the United States that is playing a major role in holding back the economy."

"A two-year budget deal clears the political uncertainty and if thins start this would also help alleviate the uncertainty on what would be the impact of easing policy."

"However, it is also clear that a streamlined announcement next week would not be a huge surprise for the market and certainly must now be largely in the price."

"USD/JPY is higher by 20 November, when the returns began to turn higher in the United States on a possible previous thins to 3.5%.

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