The Japanese yen climbed to its top rate since late August on Monday against the world's reserve currency as preoccupations strengthened about prospects of success for the U.S. to agree on the debt ceiling, Bloomberg reports.
The partial government shutdown in the globe's largest economy is the backdrop for the debt ceiling discussion that culminates with the deadline scheduled for late next week. Pessimism abounds regarding the prospects of success amongst political leaders' abilities to conduct discussions that reach agreement.
"If anything, both sides have become more entrenched in their positions," states a Monday research note penned by foreign-exchange strategy global head Mitul Kotecha with Credit Agricole SA in Hong Kong, according to Bloomberg. "Market reaction so far has been relatively muted in the expectation of an agreement, but such hopes may prove optimistic."
The monetary unit of the Pacific Rim nation climbed 0.6 percent against the greenback and 0.4 percent against the common currency of the European Union.
Asian economies are becoming more concerned about U.S. political disagreements' impact over the global economy, according to The Wall Street Journal.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.