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30 Sep 2013
Flash: GBP and EUR might get further support on US Gov shutdown fears - Danske Bank
FXstreet.com (Barcelona) - Danske Bank analysts notes that there are many issues for the FX markets to focus on this morning, and a government shutdown might be imminent in the US.
Key Quotes
“One could argue that investors move into USD when risk assets are under pressure but given the risk that the Fed might further postpone tapering - as a shutdown might seriously harm growth - we would expect investors to go into JPY and CHF instead.”
“GBP and EUR might get further support as well. However, in respect of EUR/USD, the political jitters in Italy might weigh on the cross. USD/JPY and EUR/CHF are moving lower this morning and risk is to us still tilted in this direction.”
Key Quotes
“One could argue that investors move into USD when risk assets are under pressure but given the risk that the Fed might further postpone tapering - as a shutdown might seriously harm growth - we would expect investors to go into JPY and CHF instead.”
“GBP and EUR might get further support as well. However, in respect of EUR/USD, the political jitters in Italy might weigh on the cross. USD/JPY and EUR/CHF are moving lower this morning and risk is to us still tilted in this direction.”