empty
26.05.2023 09:47 AM
US debt ceiling talks in progress

US stock markets have slightly recovered, while the euro and British pound have halted their decline following rumors that Republicans and White House representatives are approaching an agreement to raise the debt ceiling and limit federal spending for two years.

In recent days, the parties have narrowed their disagreements on many issues, although the agreed-upon details are preliminary, and a final agreement has not yet been reached. Both sides have yet to agree on the amount of the ceiling. According to the terms of the new agreement, defense spending next year may increase by 3% in line with President Joe Biden's budget request. The Speaker of the House also signaled optimism about the debt deal yesterday.

This image is no longer relevant

Reportedly, the agreement will also include measures to modernize the national power grid for using renewable energy sources, as well as expedite permits for pipeline construction and other projects related to fossil fuels. The Republican Party places a strong emphasis on this. The deal is expected to result in a $10 billion reduction in spending.

Meanwhile, the final expenditures and budget will be slightly less restrictive than the Republicans' initial proposal, which called for raising the debt ceiling until March of next year in exchange for 10 years of spending cuts.

After a recent meeting, a Democratic adviser to the House of Representatives stated that the White House is not disclosing the details of the spending limit agreement or IRS funding. "We know where our differences lie," Speaker of the House Kevin McCarthy said, adding that he planned to work on the deal over the holiday weekend. "We do not have an agreement yet. We knew this would not be easy. It's hard, but we're working. And we're going to continue to work till we get this done," he stressed.

If an agreement is reached soon, Tuesday is likely to be the day for a vote in the House of Representatives. Then the Senate will need to act quickly to send it to President Biden's desk by June 1, when Treasury Secretary Janet Yellen said her department could run out of cash.

When Republican representatives asked Patrick McHenry, the Chairman of the Financial Services Committee, what he would tell investors about the negotiations' progress, quipped, "Glad the market's closed."

On Wednesday, the Fitch Ratings agency placed the US credit rating and its AAA level under scrutiny for a potential downgrade. Following this, the White House and the Treasury Department stated that Fitch demonstrated the urgency of resolving the dispute as soon as possible.

As for the EUR/USD pair, the trend is still bearish. Bulls need to defend 1.0715 and reach 1.0760 to return to the market. This will allow them to drag the price to 1.0790. From this level, it is possible to climb to 1.0840, but without solid fundamental statistics for the eurozone, it will be quite challenging. If the trading instrument declines, big buyers are expected to enter the market at 1.0715. If there is no activity at this level, it would be better to wait for a new low of 1.0670 or open long positions from 1.0630.

Regarding the GBP/USD pair, pressure on the British pound remains. The hope for an upward movement in the pair can only be expected after reclaiming control of 1.2360. Only a breakthrough of this level may strengthen the prospects for a recovery towards 1.2410, after which a more significant surge to 1.2460 can be considered. In the case of a decline in the pair, bears are likely to gain control of 1.2310. If they succeed, breaking through this range will strike a blow to bullish positions and push the pound/dollar pair to a low of 1.2260, opening the way to 1.2220.

Seleccione el marco de tiempo
5
min
15
min
30
min
1
hora
4
horas
1
día
1
s.
Gana con los cambios en el valor de las criptomonedas con InstaForex.
Descarga MetaTrader 4 y abre tu primera operación.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    UNIRSE AL CONCURSO

Recommended Stories

Analisis del par GBP/USD. El 27 de junio. La historia no se repite.

El par de divisas GBP/USD continuó su fuerte movimiento alcista durante el jueves. Desde el inicio de la semana, el dólar estadounidense ha perdido "solo" 330 puntos. Ya hemos mencionado

Paolo Greco 07:31 2025-06-27 UTC+2

Analisis del par EUR/USD. El 27 de junio. ¿Podrá Trump equilibrar la balanza comercial?

El par de divisas EUR/USD se encuentra en un "crecimiento libre" (por analogía con el concepto de "caída libre"). El dólar vuelve a precipitarse al abismo, tal como advertimos

Paolo Greco 07:31 2025-06-27 UTC+2

Análisis del par GBP/USD. El 26 de junio. Se acerca el 9 de julio.

El par de divisas GBP/USD durante el miércoles al mediodía se mantuvo en el mismo lugar. Recordemos una antigua señal técnica. Si el precio actualiza un extremo significativo y luego

Paolo Greco 08:30 2025-06-26 UTC+2

Analisis del par EUR/USD. El 26 de junio. Jerome Powell no dijo nada nuevo.

El par de divisas EUR/USD durante el miércoles finalmente se calmó. Recordemos que esta semana comenzó con una tormenta, provocada, por supuesto, por Trump, quien primero anunció un alto

Paolo Greco 08:30 2025-06-26 UTC+2

Análisis del par GBP/USD. El 25 de junio. Trump vuelve a "pasar la aplanadora" sobre la Fed y Powell.

El par de divisas GBP/USD continuó también su movimiento ascendente durante el martes. Si desea conocer solo una pequeña parte de las razones de la nueva caída de la moneda

Paolo Greco 07:52 2025-06-25 UTC+2

Análisis del par EUR/USD. El 25 de junio. ¿Por qué volvió a caer el dólar?

El par de divisas EUR/USD continuó su movimiento ascendente durante el martes, que comenzó ya el lunes. Recordemos que el lunes todos esperaban "montañas rusas" ya en la apertura

Paolo Greco 07:52 2025-06-25 UTC+2

Análisis del par GBP/USD. El 24 de junio. No hay confirmaciones de destrucción.

El par de divisas GBP/USD también se negoció de forma bastante tranquila durante el lunes. Por supuesto, no faltaron los "movimientos bruscos", pero muchos traders y analistas esperaban un movimiento

Paolo Greco 07:37 2025-06-24 UTC+2

Análisis del par EUR/USD. El 24 de junio. Irán se retira de las negociaciones y lanza un ataque de respuesta.

El par de divisas EUR/USD se negoció con una calma extrema considerando el trasfondo fundamental que los traders tenían a su disposición ya desde el fin de semana. Recordemos

Paolo Greco 07:36 2025-06-24 UTC+2

El Bitcoin quisiera ir al paraíso, pero los pecados no lo dejan

Lo que se presentaba como un paraíso, en realidad no lo es. Los creadores del Bitcoin lo imaginaban como una forma de preservar el dinero en tiempos de todo tipo

Marek Petkovich 13:25 2025-06-23 UTC+2

Análisis del par GBP/USD. El 23 de junio. Geopolítica contra economía.

El par de divisas GBP/USD durante el viernes se negoció de forma bastante débil, pero aún así hay que destacar un factor técnico. El precio no logró consolidarse por encima

Paolo Greco 07:53 2025-06-23 UTC+2
¿No puede hablar ahora mismo?
Ingrese su pregunta en el chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.