As the ongoing Washington shutdown continues to give way to diverging domestic and global economic conditions, the next major hurdle for the world’s currencies, risk, and the US market will be the continuation of the budget discussion in the week ahead and the ultimate debt ceiling debate going into mid-October. We don’t expect a “grand bargain” that materially addresses long-term structural imbalances and fiscal issues. Essentially, everyone is poised to just “kick the can further down the road,” with a few possible concessions on spending. On balance, we see a temporary slight risk-off until mid-October, risk-on until late Q4 when the Fed begins the taper discussion, and then a tapering environment where the yield curve steepens and moves higher, driving the USD higher in the first half of 2014. Emerging market currencies will be on the defensive throughout, especially as US rates begin to rise next year and the developed world, namely the US, begins to take over being the engine of global growth from the emerging markets world. Read Cambridge Mercantile’s October 2013 issue of Currency Insights for the latest commentary and market forecasts on whether the Fed will begin to remove monetary stimulus, or taper later this year (or in early 2014) and the impact on global currencies for the remainder of the 2013. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex Bits share Read Next Forex Analysis: USD/JPY Breaks Out of Consolidation James Chen 10 years As the ongoing Washington shutdown continues to give way to diverging domestic and global economic conditions, the next major hurdle for the world's currencies, risk, and the US market will be the continuation of the budget discussion in the week ahead and the ultimate debt ceiling debate going into mid-October. We don't expect a "grand bargain" that materially addresses long-term structural imbalances and fiscal issues. Essentially, everyone is poised to just "kick the can further down the road," with a few possible concessions on spending. On balance, we see a temporary slight risk-off until mid-October, risk-on until late Q4 when… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
