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Markets retreating sharply as shutdown looms

FXstreet.com (Edinburgh) -Equities in the US trading floor are now extending their bounce off session lows, although the atmosphere amongst traders remains heavy, as the deadline for a US Government shutdown gets closer. After dipping to the vicinity of the key support at the 80.00 handle, the US Dollar index has managed to pare initial losses and rebound to the current area of 80.20/25, albeit still trading in the red territory. At the moment, DowJones is losing 0.62%, followed by the S%P500, 0.42% and the Nasdaq, 0.17%.

Bourses in the Old Continent closed in a ‘sea of red’ following the events in the US economy and the increasing uncertainties regarding the Italian political scenario. The CAC40 was the worst performer, losing 1.03% and followed by the DAX and the FTSE100, both dropping 0.77%. The shared currency is now parked around 1.3550, easing some pips after the bull run to 1.3560.

In the commodities’ space both the barrel of WTI and the ounce troy of gold are trading on the back footing, down 0.90% at $101.94 and 0.84% at $1,328, respectively.

USD/JPY at fresh daily highs

The USD/JPY bounced strongly from a 1-month low rallied nearly 100 pips and during the American session amid news US Senate Republicans discussing a one-week stopgap funding bill that would allow more time for negotiations to avoid a government shutdown.
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EUR/GBP mixed and resumes bear trend

EUR/GBP has printed a high of 0.8386 and currently up 0.05% vs a low of 0.8340, trading at 0.8356 at the time of writing.
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