Well, as I expected last Thursday was a massacre on the USD by the other majors. The half baked solution carved out by the US was not surprising and yet at the same time so predictable.
It was time for the US to reopen the government offices, it simply could not continue this embarrassing situation. So now the government is reopened but it’s fate is shifted to January 15th, 2014.
I knew the Republicans and the Democrats would not come to an agreement regarding the increase in the debt ceiling limit and rather than to continue to push a bad situation, what do they do? Suspend it, or rather postpone it to February 7th, 2014, in the meantime, the US has a ‘carte blanche’ to keep on printing new monies to meeting all it’s obligations till next February!
What a way to go United States of America………………which is why the fx market decided to punish the US dollar and it did with a vengeance.
Lesson learnt; never bet on politics and politicians, better to wait till it’s over and then focus back on fundamentals and technicals.
The Panthenon Investment Group 