The U.S. dollar fell against most major currencies despite the agreement on the U.S. budget , in which it agreed to fund the government until January 15, and the extension of the debt ceiling until February 7 . Facilitating the players on this decision was short-lived , as less than 3 months later the Americans will solve the fundamental problem of the new spending and the deficit.

The agreement prompted traders and investors to reconsider their predictions as to when the U.S. Federal Reserve will begin to phase out its program to stimulate the economy - at least in 2014.

Expectations about what the Fed will maintain its economic stimulus program for a longer period of time, putting pressure on the dollar , providing support for risk sensitive currencies and currencies of emerging markets.

Euro jumped 0.9% against the U.S. dollar to a new 8 -month high of 1.3680 dollars.

In addition , we add that the pressure on the U.S. currency also had a message saying that today the Chinese rating agency Dagong announced its decision to downgrade the U.S. credit rating by one position to A- from A, leaving a negative outlook . In its decision, the agency referred to concerns about the country's ability to solve the problem of the debt crisis , as well as the damage done to the economy long " shatdaunom " government.

" So , the U.S. government continues to stand on the brink of default crisis , and in the foreseeable future, this situation will not change significantly ," - said in a statement accompanying Dagong.

Despite the fact that the solutions Dagong is not as important as the actions of Fitch, Moody's or Standard & Poor's, today's event is characterized by a rather symbolic value , says Reuters. There are also rumors about the intention Fitch will soon follow the example of Dagong.

The pound rose sharply against the dollar , helped by the publication of data on Britain. The Office for National Statistics said that the results of last month, the volume of retail sales rose moderately , thereby exceeded the forecasts of experts.

According to the report , the September volume of retail sales increased by 0.6 % ( on a monthly basis ), which followed a decline of 0.8 % in the previous month. Many experts believed that this figure will rise to 0.5 %.

In addition, we add that annualized retail sales rose last month by 2.2 %, compared with a gain of 2.1 % in August , and the experts' forecasts at 2.0 %.

The Office for National Statistics reported that the sales of furniture accounted for half of the total monthly rise , making it possible to add about 0.3 percentage points.

Meanwhile , sales in the food industry have decreased in September by 0.2 % , while continuing to decline at 2.5% , which was recorded in August. Compared to the same period last year, sales of food products fell by 0.6 % , after falling 0.5 % in August.

The data also showed that with the exception of fuel, total sales rose by 0.7 % between August and September and by 2.8 % compared with September 2012 .

European stocks erased their decline in the final half an hour of trading, leaving the Stoxx Europe 600 Index at a five-year high, as U.S. equities rebounded after Congress agreed to extend the American government’s debt limit.

The Stoxx 600 added 0.1 percent to 315.98 at the close, rebounding from a decline of as much as 0.6 percent. The equity benchmark rose to its highest level since June 2008 yesterday on optimism U.S. lawmakers would reach a deal to reopen the government and increase the debt ceiling.

In the U.S., President Barack Obama signed into law a measure to extend the nation’s borrowing authority into early 2014 and end the government shutdown that started Oct. 1. The deal avoided a default and means that federal workers will return to their jobs from today.

The Standard & Poor’s 500 Index rose as high as 1,726.15, above its record close on Sept. 18.

Dagong Global Credit Rating downgraded the U.S. to A- from A and reiterated its negative outlook on the government of the world’s largest economy. The rating company said the U.S. will struggle to avoid repeating this week’s political impasse over the limit on sovereign debt, according to a statement.

National benchmark indexes climbed in 10 of the 18 western-European markets. The U.K.’s FTSE 100 gained 0.1 percent and France (CA)’s CAC 40 dropped 0.1 percent, while Germany’s DAX declined 0.4 percent.

Sulzer fell 4.4 percent to 132.20 Swiss francs after predicting that 2013 sales will probably not exceed the 4.02 billion francs ($4.5 billion) generated in 2012. The pump manufacturer predicted slight growth for revenue this year when it reported half-year results on July 23. That was a downgrade from an earlier forecast for moderate growth.

Outotec slumped 15 percent to 8.23 euros. The Finnish company forecast that it will generate no more than 2.1 billion euros ($2.9 billion) in sales in 2013 because its order intake has declined in the first nine months of this year. Outotec had predicted revenue of as much as 2.3 billion euros.

Nutreco NV slid 4 percent to 36.26 euros after the world’s largest supplier of fish feed forecast earnings before interest, taxes and amortization of about 255 million euros in 2013. The company had predicted it would at least match last year’s 262.1 million euros.

West Texas Intermediate dropped to a three-month low after an industry group reported an increase in inventories last week and as more Americans than forecast filed applications for unemployment benefits.

Prices dropped to near $100 a barrel. Supplies climbed by 5.94 million barrels, according to the American Petroleum Institute yesterday. Jobless claims reached 358,000 in the week ended Oct. 12, the Labor Department said. Prices rose 1.1 percent yesterday before Congress voted to end the government shutdown and raise the debt limit.

WTI for November delivery fell $1.86, or 1.8 percent, to $100.43 a barrel at 11:54 a.m. on the New York Mercantile Exchange after dropping to $100.09 the lowest intraday level since July 3. The volume of all futures was 25 percent above the 100-day average.

North Sea Brent for December settlement slid $1.31, or 1.2 percent, to $109.28 a barrel on the London-based ICE Futures Europe exchange. The November contract expired yesterday. Volume was 14 percent below the 100-day average. December Brent crude was at a premium of $8.85 to the equivalent-month WTI contract. The gap between November contracts was $8.57 yesterday.

The value of gold has shown strong growth while the dollar fell the most in a month against the euro , as the vague situation around the U.S. debt limit would prevent the growth and trigger the Fed to delay reduction programs stimulate the economy .

The U.S. currency weakened against all but one of its 16 major counterparts after BlackRock and Pacific Investment Management said that the Fed will maintain its bond purchases , which put pressure on the dollar.

Gold strengthened , when the rating agency Dagong China lowered the credit rating of the U.S. government , stimulating demand for safer assets .

This week the precious metals were dominated by investor - sellers due to the weakening of the operating factors such as political struggle for the budget and the approaching debt limit in the U.S. , points strategist and director of exchange-traded products brokerage Saxo Bank Ole Slot Hansen . Several attempts to initiate growth on the controversy in Washington quickly exhausted , and in light of the problem-solving support is rapidly disappearing , creating a risk of even deeper correction. In addition to the ongoing political conflict , the players , according to experts , will focus on the U.S. Federal Reserve and the timing of when she can begin to curtail asset purchase program . In this case, bond yields may again begin to rise, and will not benefit the precious metals , particularly gold, analysts say .

The cost of the December gold futures on COMEX today rose to $ 1322.90 per ounce.

EUR/USD $1.3400, $1.3450, $1.3500, $1.3525, $1.3535, $1.3650

USD/JPY Y97.50, Y87.70, Y97.85, Y98.00, Y98.75, Y98.80, Y98.90

GBP/USD $1.5900, $1.5920, $1.5930, $1.5960-65, $1.6000(large), $1.6050

EUR/GBP stg0.8460, stg0.8560

USD/CHF Chf0.9150

AUD/USD $0.9440, $0.9475, $0.9480, $0.9500, $0.9510, $0.9520, $0.9550

AUD/JPY Y93.00, Y93.75, Y94.00, Y95.00

USD/CAD C$1.0310, C$1.0385, C$1.0400

U.S. stocks fell as Congress lifted the debt limit and International Business Machines Corp. and Goldman Sachs Group Inc. tumbled amid declining revenues.

Global Stocks:

Nikkei 14,586.51 +119.37 +0.83%

Hang Seng 23,094.88 -133.45 -0.57%

Shanghai Composite 2,188.54 -4.53 -0.21%

FTSE 6,548.57 -23.02 -0.35%

CAC 4,219.39 -24.33 -0.57%

DAX 8,778.29 -67.71 -0.77%

Crude oil $101.23 -1.04%

Gold $1314.00 +2.47%

Upgrades:

Downgrades:

Travelers (TRV) downgraded to Sell from Neutral at Guggenheim

Bank of America (BAC) downgraded from Strong Buy to Outperform at Raymond James

Other:

American Express (AXP) target raised to $82 from $80 at FBR Capital

eBay (EBAY) reiterated with Outperform at RBC Capital Mkts, target lowered from $64 to $59

IBM (IBM) reiterated with Sector Perform at RBC Capital Mkts, target lowered from $205 to $195

Data

00:30 Australia NAB Quarterly Business Confidence Quarter III -1 3

08:00 Eurozone Current account, adjusted, bln August 16.9 17.7 17.4

08:30 United Kingdom Retail Sales (MoM) September -0.9% +0.5% +0.6%

08:30 United Kingdom Retail Sales (YoY) September +2.1% +2.0% +2.2%

The euro exchange rate against the dollar has increased significantly , jumping to a new 8 - month highs , despite the agreement on the U.S. budget , in which it agreed to fund the government until January 15, and the extension of the debt ceiling until February 7 . Facilitating the players on this decision was short-lived , as less than 3 months later the Americans will solve the fundamental problem of the new spending and the deficit.

In addition , we add that the pressure on the U.S. currency also had a message saying that today the Chinese rating agency Dagong announced its decision to downgrade the U.S. credit rating by one position to A- from A, leaving a negative outlook . In its decision, the agency referred to concerns about the country's ability to solve the problem of the debt crisis , as well as the damage done to the economy long " shatdaunom " government.

" So , the U.S. government continues to stand on the brink of default crisis , and in the foreseeable future, this situation will not change significantly ," - said in a statement accompanying Dagong.

Despite the fact that the solutions Dagong is not as important as the actions of Fitch, Moody's or Standard & Poor's, today's event is characterized by a rather symbolic value , says Reuters. There are also rumors about the intention Fitch will soon follow the example of Dagong.

The pound rose sharply against the dollar , helped by the publication of data on Britain. The Office for National Statistics said that the results of last month, the volume of retail sales rose moderately , thereby exceeded the forecasts of experts , which helped by higher sales .

According to the report , the September volume of retail sales increased by 0.6 % ( on a monthly basis ), which followed a decline of 0.8 % in the previous month. Many experts believed that this figure will rise to 0.5 %.

In addition, we add that annualized retail sales rose last month by 2.2 %, compared with a gain of 2.1 % in August , and the experts' forecasts at 2.0 %.

The Office for National Statistics reported that the sales of furniture accounted for half of the total monthly rise , making it possible to add about 0.3 percentage points.

Meanwhile , sales in the food industry mainly decreased in September by 0.2 % , while continuing to decline at 2.5% , which was recorded in August. Compared to the same period last year, sales of food products fell by 0.6 % , after falling 0.5 % in August.

The data also showed that with the exception of fuel, total sales rose by 0.7 % between August and September and by 2.8 % compared with September 2012 .

EUR / USD: during the European session, the pair rose to $ 1.3662

GBP / USD: during the European session, the pair rose to $ 1.6108

USD / JPY: during the European session, the pair fell to Y97.79

At 12:30 GMT Canada will present data on the volume of transactions with foreign securities in August , and the U.S. will report the volume of building permits issued and the number of Housing Starts in September. At 14:00 GMT the United States will present the production , Philadelphia Fed index for October.

EUR/USD

Offers $1.3650, $1.3646, $1.3638

Bids $1.3600, $1.3585/80, $1.3555/50, $1.3465/60, $1.3440/35, $1.3420

GBP/USD

Offers stg0.8550/55, stg0.8520/30, stg0.8510, stg0.8495/500

Bids stg0.8445/40, stg0.8425/15, stg0.8400, stg0.8370/65

AUD/USD

Offers $0.9700, $0.9650, $0.9641, $0.9620

Bids $0.9560/50, $0.9500, $0.9480, $0.9435/30

EUR/GBP

Offers stg0.8550/55, stg0.8520/30, stg0.8495/500

Bids stg0.8445/40, stg0.8425/15, stg0.8400, stg0.8370/65

EUR/JPY

Offers Y134.50, Y134.38, Y133.90/00

Bids Y133.20, Y133.00, Y132.85/80, Y132.50

USD/JPY

Offers Y99.20/30, Y99.00, Y98.80, Y98.50

Bids Y97.70, Y97.50, Y97.35, Y97.20

European stocks fell from a five-year high as companies from Sulzer (SUN) AG to Outotec Oyj lowered their financial targets, while a Chinese rating company downgraded the American government’s debt. U.S. index futures also retreated, while Asian shares rose.

The Stoxx Europe 600 Index lost 0.3 percent to 314.71 at 10:24 a.m. in London as more than two stocks dropped for every one that climbed. The equity benchmark rose to its highest level since June 2008 yesterday on optimism U.S. lawmakers would reach a deal to reopen the government and increase the debt ceiling.

In the U.S., President Barack Obama signed into law a measure to extend the nation’s borrowing authority into early 2014 and end the government shutdown that started Oct. 1. The deal avoided a default and means that federal workers will return to their jobs from today.

Dagong Global Credit Rating downgraded the U.S. to A- from A and reiterated its negative outlook on the government of the world’s largest economy. The rating company said the U.S. will struggle to avoid repeating this week’s political impasse over the limit on sovereign debt, according to a statement.

Sulzer fell 4.8 percent to 131.70 Swiss francs after predicting that 2013 sales will probably not exceed the 4.02 billion francs ($4.4 billion) generated in 2012. The pump manufacturer predicted slight growth for revenue this year when it reported half-year results on July 23. That was a downgrade from an earlier forecast for moderate growth.

Outotec slumped 12 percent to 8.58 euros. The Finnish company forecast that it will generate no more than 2.1 billion euros ($2.9 billion) in sales in 2013 because its order intake has declined in the first nine months of this year. Outotec had predicted revenue of as much as 2.3 billion euros.

Nutreco NV slid 3.9 percent to 36.27 euros after the world’s largest supplier of fish feed forecast earnings before interest, taxes and amortization of about 255 million euros in 2013. The company had predicted it would at least match last year’s 262.1 million euros.

FTSE 100 6,562.46 -9.13 -0.14%

CAC 40 4,224.01 -19.71 -0.46%

DAX 8,803.35 -42.65 -0.48%

EUR/USD $1.3400, $1.3450, $1.3500, $1.3525, $1.3535, $1.3650

USD/JPY Y97.50, Y87.70, Y97.85, Y98.00, Y98.75, Y98.80, Y98.90

GBP/USD $1.5900, $1.5920, $1.5930, $1.5960-65, $1.6000(large), $1.6050

EUR/GBP stg0.8460, stg0.8560

USD/CHF Chf0.9150

AUD/USD $0.9440, $0.9475, $0.9480, $0.9500, $0.9510, $0.9520, $0.9550

AUD/JPY Y93.00, Y93.75, Y94.00, Y95.00

USD/CAD C$1.0310, C$1.0385, C$1.0400

Asian stocks rose, with the regional benchmark index headed toward a five-month high, after the U.S. Congress voted to end the government shutdown and raise the debt ceiling.

Nikkei 225 14,586.51 +119.37 +0.83%

Hang Seng 23,149.27 -79.06 -0.34%

S&P/ASX 200 5,283.1 +20.19 +0.38%

Shanghai Composite 2,188.54 -4.53 -0.21%

Nissan Motor Co., which gets about 34 percent of its car sales from North America, gained 2.2 percent in Tokyo.

Kansai Electric Power Co. added 2.8 percent after the Japanese utility reported an unexpected first-half profit.

Boral Ltd. advanced 5.9 percent after USG Corp. agreed to pay the Australian company as much as $575 million to form a jointly owned building-materials business spanning Asia and the Middle East.

The dollar and euro touched three-week highs versus the yen as Congress voted in favor of a deal to end a U.S. government shutdown and raise the debt limit, damping demand for haven assets. The Senate voted 81-18 to halt the 16-day shutdown and raise the borrowing limit. The House of Representatives voted 285-144 to clear a measure that now heads to President Barack Obama for his signature. Obama plans to sign the bill tonight, Sylvia Mathews Burwell, director of the Office of Management and Budget, said in a statement. The framework negotiated by Senate Majority Leader Harry Reid, a Democrat, and Minority Leader Mitch McConnell, a Republican, would fund the government through Jan. 15, 2014, and suspend the debt limit until Feb. 7, setting up another round of confrontations then.

The yen held losses from yesterday against its U.S. and European peers as Asian stocks rose.

The Fed Bank of Philadelphia’s general economic index probably fell to 15 in October from 22.3 the previous month, a report today is forecast to show, according to the median in a Bloomberg News survey. Readings greater than zero signal growth. The Empire State index for the New York region sank to 1.5 this month, a five-month low, an Oct. 15 report showed.

Policy makers including Fed Bank of New York President William Dudley speak today.

EUR / USD: during the Asian session the pair rose to $ 1.3550

GBP / USD: during the Asian session, the pair rose to $ 1.5985

USD / JPY: during the Asian session the pair rose to Y99.00

The UK calendar gets underway at 0830GMT, with the release of the September retail sales data.

OIL (WTI) 102.25 1.04 1.03%

Nikkei 225 14,467.14 25,60 0,18%

Hang Seng 23,228.33 -108,19 -0,46%

S & P / ASX 200 5,262.91 +3.76 +0.07%

Shanghai Composite 2,193.07 -40.34 -1.81%

FTSE 100 6,571.59 +22.48 +0.34%

CAC 40 4,243.72 -12.30 -0.29%

DAX 8,846 +41.56 +0.47%

Dow 15,373.83 +205.82 +1.36%

Nasdaq 3,839.43 +45.42 +1.20%

S&P 500 1,721.54 +23.48 +1.38%

(pare/closed(00:00 GMT +02:00)/change, %)

EUR/USD $1,3533 +0,07%

GBP/USD $1,5956 -0,25%

USD/CHF Chf0,9134 +0,11%

USD/JPY Y98,80 +0,60%

EUR/JPY Y133,69 +0,65%

GBP/JPY Y157,60 +0,33%

AUD/USD $0,9558 +0,28%

NZD/USD $0,8424 +0,33%

USD/CAD C$1,0326 -0,48%

00:30 Australia NAB Quarterly Business Confidence Quarter III -1

08:00 Eurozone Current account, adjusted, bln August 16.9 17.7

08:30 United Kingdom Retail Sales (MoM) September -0.9% +0.5%

08:30 United Kingdom Retail Sales (YoY) September +2.1% +2.0%

12:30 Canada Foreign Securities Purchases August 6.09 7.21

12:30 U.S. Initial Jobless Claims October 374 357

14:00 U.S. Philadelphia Fed Manufacturing Survey October 22.3 15.4

14:30 U.S. Crude Oil Inventories October +6.8

16:45 U.S. FOMC Member Charles Evans Speaks

16:45 U.S. FOMC Member Esther George Speaks