Debt Ceiling Wrangling Continues in the U.S.

Even though the debt ceiling wrangling continues in the U.S., the U.S. dollar is higher in forex trading. Greenback is doing well today because risk aversion is such an issue right now. Of more immediate concern is the sovereign debt in the euro zone.

Indeed, many investors and forex traders believe that, in the end, President Obama and Congressional Republicans will come to an agreement to raise the debt ceiling. The consequences of not doing so would be too great. As a result, the focus is on European debt right now, and its effect on the euro zone.

Even so, some of the debt ceiling wrangling is causing some jitters. If an agreement isn’t reached, the U.S. will have its credit rating downgraded, and that could trigger a rather large plunge for the U.S. dollar. 

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