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Forex pairs in this Article » GBP/USD, USD/JPY (Barcelona) - The yen strengthened on comments by FOMC board member Esther George at discourse about her outlook at the Colorado Economic Forum. In the US, the debt ceiling issue fuels market participants to take measures that may smooth down a potential US government shutdown in the next incoming weeks.


As market participants rushed to buy the yen on safe-haven behavior, the Asian currency strengthened against all 16 major counterparts. The Nikkei closed with 0.16% losses and the Japanese finance minister Aso said the government is still not thinking about an immediate corporate tax cut. The CPI data published left the market indifferent.


In Washington, the politicians continue divided in regards to the debt-ceiling issue as the hard deadline approaches. While Republicans ask for more a one-year delay of the Obama Care proposal, the tax overhaul and the rollback of environmental regulations, Democrats say to feel threatened by a potential government shutdown on “dangerous gamble”.

On FOMC’s George headlines, the greenback strengthened.
Gold stumbled to session lows again to $1,320.00 while oil remains trading around the $102.60 zone. The Aussie slacks and retreats among all major pairs while the pound sustains gains ahead of housing market data.

Main Headlines in Asia

- ECB’s Coeure: ECB has easing bias, possibility of further cuts in policy rates

- USD index expected to decline modestly - JPMorgan

- Japan's CPI series fail to impress...

- Unwinding QE3 an impossible task for the Fed?

- Washington shaking over debt ceiling threats?

- FOMC board member Esther George: Fundamentals of economy have improved substantially

- Japan’s finance minister Aso: not thinking about an immediate cut in effective corporate tax rate
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