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Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY
FXstreet.com (Córdoba) - The USD weakened broadly and slumped versus major competitors after the US budget deal, which funds the government until Jan 15 and raises the debt ceiling until Feb 7.

Even though immediate pressure was removed, the relief was short-lived as fundamental issues over spending and deficit persist and Americans have another cliff to face in less than 3-months. USD weakness was not helped by China's Dagong cutting the US sovereign credit rating to A- from A.

EUR/USD soared to above 1.3600 and reached its highest since early February at 1.3649. GBP/USD rose over 150 pips but stalled just ahead of the 1.6100 mark. USD/JPY dropped to 97.80 from Asian 3-week high of 99.00. Elsewhere, AUD/USD printed a fresh 4-month high of 0.9620 and USD/CHF a 1-week low of 0.9028.

During the New York session, watch for US data including Jobless Claims, Housing Starts, Building Permits, Industrial Production, Capacity Utilization.

Main Headlines in Europe:

European open: Relief rally subdued with debt ceiling arguments postponed until early 2014

EMU: Current Account surplus widens to €17.4B in August

UK: Annual Retail Sales rise 2.2% in September

Chinese rating agency cuts US credit rating

Spanish bond yields improve at debt auction

EMU: Construction Output grows by 0.5% in August
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