- US debt ceiling talks continue as default deadline day nears.
- US dollar technical outlook remains positive despite Friday’s sell-off.
US debt ceiling talks continue tomorrow with President Joe Biden meeting House Speaker Kevin McCarthy with Treasury Secretary Janet Yellen warning that the US government could run out of money soon, ringing in their ears. Ms. Yellen says the so-called ‘X-date’, when the US Government is unable to pay its bills in full and/or on time’, is June 1st although the closely followed Bipartisan Policy Organisation sees a more flexible early-June to early-August deadline depending on cash inflows.
The US dollar is being buoyed by these debt default fears with investors in ultra-short, one-month US Treasury bills demanding higher yields over the potential X-date. The yield on the one-month bill hit a multi-decade high of 5.90% last Tuesday and is currently trading at a still elevated 5.54%.
EUR/USD DAILY PRICE CHART – MAY 22, 2023
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