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Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY (San Francisco) - The US Dollar traded higher on Thursday against most of its major rivals as investors digested a round of upbeat economic data and rumors about a deal in debt ceiling as soon as this weekend in Washington. However, ranges were tight.

Early in the day, Republicans left the door open for a positive outcome of the debt ceiling debate. Senior Republican Jeff Sessions said there will be no shutdown and government defaults. Later, the House's Speaker John Boehner commented that Republicans will try to pass a bill linking a rise in the debt ceiling with further cuts in Government spending. However the expectations on a deal before the last minute are minimal.

The Dollar index (DXY) retraced Wednesday’s losses and resumed the weekly upside to test the highest level since September 18th at 80.65. In this line, the WTI also traded higher as the US Oil hold the 102.20 level for third day. Now the Oil is pricing at 102.88, 0.20% positive on the day. If the WTI lost the 102.20 level, the USD uptrend would be benefited.

Back to the currency market, the EUR/USD traded down on the day to close below the 1.3500 level. According to Chief Analyst Valeria Bendarik, the bearish potential is increasing: "The EUR/USD enters Asian session presenting a slightly bearish technical stance in the hourly chart, as price develops below 20 SMA and indicators head south below their midlines." However, Bednarik comments that the weekly low of 1.3461 is maintaining the downside limited: "Price needs to actually accelerate below it to be exposed to a downward continuation over the upcoming hours." The Euro to Dollar exchange rate is now at 1.3485.

Not much story in the GBP/USD as the Cable remains inside its 1.6000/90 range of the last days. However the pair looks weak. The USD/JPY performed its first positive day in the last 5 sessions as the US Dollar managed to recover from 98.25 to close at 99.00.

Nevertheless, ForexLive's analyst Adam Button affirmed in a recent news that there is "no appetite for USD/JPY above 99.00." Buttom comments that "one thing USD/JPY could have working for it is a large $800m option tomorrow at 99.50. It would probably take some positive smoke signals from Congress on the budget to get their."

Main headlines in the American Session:

US: GDP rose 2.5% YoY in Q2

US: Initial Jobless Claims fell to 305K

Euro under pressure on ECB signs of Eurozone fragility

Political uncertainty increases in Italy after Berlusconi's MPs walkout threat

US: Annual Pending Home Sales rise by 5.8% in August

Wall Street closed higher after 5-day losing streak
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