Forex Forecast: US Debt Standoff Creates Trouble for EURUSD, AUDUSD
• The US fiscal impasse has survived the weekend, and concern for risk trends and dollar has returned
• A fundamental relationship to both safety and the greenback creates problems for pairs like EURUSD
• An ideal risk aversion and dollar aversion pair may be USDJPY
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Chief Strategist John Kicklighter discusses the top Forex fundamental themes for the coming week of trading. These sessions are held live every Monday at 16:30 GMT. Against optimism that the US debt ceiling standoff would be resolved over the weekend amid thawing rhetoric, policy officials instead remain at odds this week leaving the market on high alert. The complications this theme brings are pervasive and complicating - particularly for the majors. We discuss this important theme at length in the weekly forecast.
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