The financial markets continue to monitor developments on the debt ceiling dispute. You-Na Park-Heger, FX Analyst at Commerzbank, expects the US Dollar to weaken as the deadline approaches.

Solution to the debt dispute?

“It is questionable whether the USD will be able to benefit if an agreement between the two parties is postponed again.”

“Will the USD then still be able to gain in its function as a safe haven or will concerns about an imminent default by the US dominate at some point, so that the USD will come under depreciation pressure? The closer the presumed deadline approaches, the more likely the latter seems to me.”