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Markets in limbo as US debt deadline nears
The US government shutdown is in its second week, leaving the markets in relative limbo.
There are just 8 days to go until the US runs out of money unless the Republicans and Democrats can agree on raising the debt ceiling.
President Obama warns a default would be “insane, catastrophic, chaos.” In a speech at the White House e demanded that Republican representative John Boehner take the weight of that threat off the US economy, but Boehner says they will not yield until Obama comes to the bargaining table.
As the budget impasse drags on, the dollar index remains close to an 8 month low. Against the yen the greenback is languishing near a 2 month low.
In the event of a US default the dollar is expected to underperform safe-haven currencies like the yen and swiss franc. But Neil Staines is confident a solution will be found before the deadline and sees value in options, and overall he sees dollar strength coming out of it.
01:32 minutes
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