The U.S. Dollar strengthened against the Euro as demand for refuge increased on concerns that talks between U.S. President, Barack Obama and lawmakers will reach an impasse. The greenback rallied even further after the House Speaker, John Boehner, stated that he has offered a solution for reducing the budget deficit. The Dollar remained strong even after economic releases showed that Factory output declined 0.4% in October.
The 17-nation currency extended losses after reports showed that unrest in the Middle East has escalated as militants continued launching rockets into Israel.
The Yen rallied against the majority of its Forex counterparts on the belief that this week’s fall happened too quickly. The Japanese currency weakened on the possibility that the opposition party will assume power and will pressure the Bank of Japan into implementing aggressive monetary easing measures.
The Euro pared gains against the Yen as investors look forward to a meeting between the region’s Finance Ministers scheduled for November 20th. During this meeting, E.U. leaders will discuss the possible repercussions that may occur as a result of having granted Greece a two-year extension for reducing the budget deficit.
In other exchange news, the British Pound rebounded from a two-week low versus the shared currency amid conjectures that recent declines were too big.
And lastly, the Canadian Dollar remained within a tight range as Forex market investors continue to wonder whether “U.S. fiscal cliff” talks will provide the answer needed to avert another recession.