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Saxo Traders: Markets "irrational" on US debt solution
As the US narrowly escapes a debt crisis by agreeing to extend the treasury's borrowing authority until 7 February, Saxo Bank's traders say the overall feeling is that markets are "disappointed" with the outcome.
This is because the deal only offers a temporary solution and does not resolve the budgetary issues that divide Republicans and Democrats.
As a result, they say markets is being rather "irrational". Before there was an agreement
in the States the market was buying euro dollar because of the fear of a default. Now that there is a solution, markets are the dollar, especially against the Yen.
Looking ahead, Saxo Bank's traders warn that the markets will be "focusing on all the postponed data", as it wasn't released during the government shutdown, although they are not sure when these are going to be
released
The White House budget office said federal workers should return to work on Thursday.
01:46 minutes
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