The end of the month will bring to the American government the end of the budget. Until recently, everybody’s mind was occupied by the Quantitative Easing program’s fate and the next decision that FOMC is considering. Thus, gold remained at low levels, not signaling any concerns. Now that the fever has passed, the Treasury returned to the spotlight. As the problem of the government spending and the possible raising of the debt ceiling are mentioned, we could observe the main indexes of the American economy (The Dow Jones industrial average, The Nasdaq Composite Index, The Standard & Poor’s 500 Index) going down. The American dollar is not reacting yet, but waiting for final decisions.
The next deadline is on Monday when U.S. congressional officials must find a solution and agree on a deal to have the government running. Obama’s proposed health care reform is currently criticize and might be removed from the negotiating table.
The influential factors for the evolution of the American dollar today were the report which came from the real estate sector and the report regarding the new purchase orders placed for durable goods, excluding transportation items. Thus, the Purchases of new U.S. homes rose in August, recovering and overcoming the last two months which were the worst period of the year for this sector. It seems that the keeping of the monetary stimulus program gave a boost to the new home sales report, pushing the figures to 421k closer to 497k, the best result of the year. The Core Durable Goods Orders declined by 0.1%, a report which tends to be very volatile and didn’t have a major impact on the American dollar.