Has risen U.S. dollar Against the basket of currencies included in the index, with the support of 0.424 new points, and the rate of 0.41%, at a range of 102.83 points, despite the US government debt ceiling crisis.
The US dollar and the debt crisis
And US futures rose today, Wednesday, May 17, 2023, after policymakers in Washington indicated that they were optimistic about the possibility of concluding a spending agreement, which would avoid an unprecedented government default.
In this regard, contracts that follow the benchmark Wall Street index «S&P 500» rose by 0.4%, while contracts that follow the Nasdaq 100 index, which has heavy technology, rose by 0.2% before the market opened in New York.
The moves come after the White House reported optimism about a deal that would raise the country’s debt ceiling before a looming deadline, though lawmakers failed to reach a compromise at a meeting on Tuesday.
Janet Yellen, like the United States Treasury Secretary, had warned that the United States might default on its debts as early as next June.
And government bonds witnessed stability from previous sessions, as the yield on two-year Treasury bonds increased by 0.01 point to 4.0%, while the yield on standard 10-year bonds decreased by 0.02 percentage point, at 3.53%.
Short-term bond yields due next month, on the very date the government may run out of money, hit their highest levels since before the 2008 financial crisis earlier in the week.
“Markets will start pricing in debt ceiling fears in mid-June, which negotiations will obviously cause political mishaps,” said Mohit Kumar, chief financial economist for Europe.
In addition, traders in Europe digested the release of the final harmonized index of consumer prices in the eurozone for the month of April, which registered a slight increase in the annual rate of 7%, compared to 6.9% in March.
The basic inflation rates in the states fell by 0.1% to 5.6% during last April, although they do not include food and energy costs, which directed the bishop that raising interest rates had come to stop, but the tone of the federal officials suggests that the increases are coming and that there is work that must be done.
At the same time, the European Central Bank slowed the pace of its base rate increases and raised the interest on deposits by a quarter of a percentage point to 3.25%, but said it has more targets that must be achieved in a clear signal of its inflation.
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