Tension in the markets due to the US debt and the need to reach an agreement

Tension in the markets due to the US debt and the need to reach an agreement

The dollar was lower on Friday but remained on track for its third consecutive weekly gain.while Wall Street opened higher with the hope of an early resolution of the negotiations on the US debt ceiling.

Thus, the Dow Jones rose 0.7%, while the S&P 500 advanced 0.7% and the Nasdaq grew almost 1%.

The apparent progress on Thursday in the talks between the president Joe Biden and the Republican congressman kevin mccarthy they helped calm nervousnessbut the markets continued in suspense before any default risk before a long holiday weekend in USA.

“Monday is a holiday in the United States, so market players will have to wait until Tuesday May 30 to re-trade positions, so there is a strong belief that Washington needs to reach a deal this Friday,” MUFG currency analysts noted in a note.

The operators of Wall Street They turned increasingly cautious on US government bonds, but the prospect of an imminent deal helped lift sentiment across markets on Friday and boost risk-sensitive currencies at the expense of the dollar.

The dollar index, which compares the greenback with a basket of six major currencies, fell 0.2% to 104.04 units, close to the two-month high touched the day before, at 104.31. Despite everything, it is heading for a weekly rise of around 0.8%.

The dollar was moving away from its maximum of six months against the yen and was operating at 139.675 units, below 140.23 in the previous session, its highest level since November.

The euro was up 0.1% at $1.07350, but not far from the two-month low of $1.0708 hit in the previous session.

Sterling was up 0.4% at $1.23670 on data showing British consumers increased spending in April, though the currency remained on track to end the week lower.

Source: Ambito

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