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Markets Gripped By US Debt Ceiling Talks

Markets Gripped By US Debt Ceiling Talks


Asian markets gave up earlier gains on Tuesday as investors adopted a cautious stance after US debt ceiling negotiations ended “productive talks” without a deal. But both President Joe Biden (left) and House Speaker Kevin McCarthy (right) expressed optimism in the possibility of a breakthrough that would prevent a default. The European futures indicate a positive opening ahead of the preliminary PMI numbers for the eurozone. Wall Street closed with mixed results and is still being influenced by developments in the US debt limit. In the currency market, the dollar gained strength as hawkish Federal officials backed it up. Meanwhile, gold dropped for a second consecutive day amid signs that the US is making progress in avoiding default.

Big week for USD

Dollar could experience a new round of volatility due to US Debt Limit Negotiations, Fed Minutes and the top US Economic Data.

Dollar bulls gained support from Fed officials’ hawkish remarks and the productive US Debt Limit talks in the previous session. Midweek, all eyes will be on the minutes from the May FOMC meeting which could offer more clues about the central bank’s next move. Fed signals a possible pause in its 25-basis-point hike from May. It will…

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