Below trendline support, the 138.20s and then the 137.70s will be exposed. touched a six-month high of 139 in the Asian session on Tuesday whereby talks over a debt-ceiling deal in the US risk running into a brick wall while investors get set for key economic events this week. At the time of writing,slid on Tuesday as talks over the US debt ceiling continued without resolution. We also have yields on one-month US Treasury bills running into a record high.
On the preferred approach to raising the debt ceiling, three-quarters of Democrats want the limit raised first without cuts. On the other hand, two-thirds of Republicans said they want cuts tied to it. Independents were split, but a slight plurality – 48% to 45% – said they want to see cuts. Nevertheless, both sides stressed the need to avoid default with a bipartisan deal and said they would continue to talk.
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