This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
The euro is trading at $1.37, the highest level it has been since early February as the possibility of a US downgrade drives the euro higher.
On Wednesday, the Democrats and the Republicans struck a deal that ended the partial shutdown of US government bodies and temporarily increased the debt ceiling. Traders bought EUR/USD over fears US government debt will be downgraded, while the partial shutdown had a negative impact on the US economy.
The US non-farm payrolls report and unemployment data will now be issued on Tuesday, after the US Labour department was impacted by the by the partial shutdown. Economists are expecting the unemployment to remain unchanged at 7.3%, but if the rate increases we could see the euro trader higher versus the US dollar, as traders could see it as a sign that the US stimulus package will stay in place for the foreseeable future.