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U.S. found temporary relief with the U.S. house vote for rising the borrowing limits today. The vote went into favor of increasing the government borrowing limits from the current 16.4 trillion U.S. dollars. The catch is that it is a temporary extension with a limit of May 19th. The voting result was 285 for versus 144 against.

The proposal will now be sent to the U.S. senate and it is expected that it will be passed as it is.

US national debt is estimated to have reached a level of 16.47 trillion against the government’s borrowing limit of 16.39 trillion. The national debt had become more that the U.S. gross domestic product in 2012. With the current situation is was estimated that without increasing the borrowing limits  the U.S. treasury would run out of funds to fulfill its obligation of payments by February 15 to March 1st week.

U.S. Dollar remains uncertain

The dollar has been moving without any clear direction against most of the currency majors except Japanese yen.

EUR/USD

After the markets opened on Monday, EUR/USD moved in tight ranges between 1.3300 to 1.3332 for over 30 hours of trading. A break of that range resulted in quite volatile moves which have been failing to show any clarity of direction. Since then the currency pair had gone to a high of 1.3371 before a fall to 1.3266. The subsequent rise saw it touching 1.3354 before another fall to 1.3264.

GBP/USD

Since Monday market opening GBP/USD continues to move sideways in the range between 1.5802 and 1.5893.

USD/JPY

Unlike other U.S. dollar pairs USD/JPY has seen some directional moves. After opening at 90.08 the pair had tried to move up initially but failed at 90.24. A strong fall from there took it to the low of 88.06. Some recovery has been seen after that but the pair is facing resistance below 88.80 and seems to be losing the steam again.

USD/CHF

After a drop from 0.9354 to 0.9275 this week, the pair has gone into a sideways mode. The price action has been between a narrow range of 0.9275 and 0.9315 for past over 36 hours and is clearly not showing any trend.