The deal to resolve the US debt ceiling crisis is expected to secure approval from Congress, with both the president and congressional officials lobbying for its approval.


  1. Markets are dominated by news that the US presidency and the House of Congress agreed on a deal on Sunday that will end the debt ceiling crisis once and for all. The deal provides for both spending cuts and raising the debt limit, and makes it clear that the US will not meet the 5.Thursday June. Both the president and congressional leaders are lobbying to pass the deal through a congressional vote. Risky assets remain slightly higher on the newsafter some stock markets saw very strong gains at the end of last week, esp the NASDAQ 100 index which broke strongly and reached a new 1-year high price..
  2. In the forex market, the US dollar is holding up and is likely to continue to riseagainst its long-term bearish trend. Action so far today has been dominated by the weakness of the Australian dollar and the strength of the euro. Trend traders will likely look for long trades in USD/JPY a currency pair that recently hit a new 6-month high while being short NZD/USD it can also be attractive. The Kiwi remains weak after the RBNZ last week signaled its cap rate had been reached in a surprise move.
  3. There could be above-average volume in the markets today as the US and UK returned from bank holidays yesterday.
  4. Later today, US central bank consumer confidence data will be released (expected to show a small decline).
  5. Australia’s CPI (inflation) data will be released tomorrow, with the annualized rate expected to rise slightly from 6.3% to 6.4%.

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