{"id":62029,"date":"2023-05-12T10:56:09","date_gmt":"2023-05-12T07:56:09","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=62029"},"modified":"2025-10-17T11:52:48","modified_gmt":"2025-10-17T08:52:48","slug":"us-debt-ceiling-troubling-traders","status":"publish","type":"post","link":"https:\/\/www.ironfx-id.com\/fr\/us-debt-ceiling-troubling-traders\/","title":{"rendered":"US debt ceiling troubling traders"},"content":{"rendered":"

The USD was on the rise across the board yesterday, despite market expectations solidifying somewhat regarding the Fed\u2019s rate hike pause, as a number of financial data tended to weaken. It was characteristic how the US PPI rates for April tended to underscore the easing of inflationary pressures as they slowed down on a year-on-year level, while the tightness of the US employment market seems to be cracking given the unexpected wide rise of the weekly initial jobless claims figure. Overall, given USD\u2019s strength, commodity currencies such as the Aussie and the Loonie tended to suffer the most, given their riskier nature and market worries for a possible slowdown of growth on a global level. The pound retreated against the USD despite BoE\u2019s interest rate decision to hike rates of 25 basis points as was widely expected. In its accompanying statement the bank noted that \u201crisks around the inflation forecast are skewed significantly to the upside\u201d and given also BoE Governor Bailey\u2019s hawkish comments that inflation remains too high the bank may imply that more rate hikes are to come. Please note that pound traders seemed to be confused early during today\u2019s European session as the release of the GDP rates showed that Growth for the UK economy is easing on a year-on-year level, with the contraction suffered in March underscoring UK\u2019s flat economic outlook. Also, gold was victimized by USD strengthening as its value dropped yesterday yet market worries may be still holding the precious metal\u2019s price afloat, or at least limit its losses. On a fundamental level, market worries for the US defaulting seem to be on the rise as a meeting between US President Biden and top US lawmakers, which was scheduled for today was postponed, indicative of the lack of common ground between the two sides. The situation seems to have a negative effect on Biden\u2019s fiscal expansionary plans given also the discussion for spending cuts. Overall we reiterate our view that the issue may drag on up until the last minute, as Republicans and the White House are flexing power and may weigh on US fundamentals.<\/p>\n\n\n\n

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