Session Recap: USD mixed as focus turns to US debt

FXstreet.com (Córdoba) - The USD faced some pressure and retreated versus major competitors Wednesday, except against risk-sensitive currencies, amid concerns that US lawmakers will fail to reach a budget deal preventing a government shutdown next week.

EUR/USD managed to regain the 1.3500 during the European session, while GBP/USD was lifted by strong UK CBI data and rallied toward 1.6050. Meanwhile, USD/JPY fell below 98.50 and USD/CHF tested support at 0.9100.

On the other hand, currencies linked to commodities weakened a tad weighed by mild risk-off in financial markets. AUD/USD was hovering around 0.9350, while USD/CAD consolidates above 1.0300.

During the New York session watch for durable goods orders and new home sales.

Main Headlines in Europe:

Germany: Gfk Consumer Confidence Survey slightly up in October

Gold rises putting an end to a three-day losing streak

Senator Ted Cruz continues to hold the floor in mammoth debt ceiling speech

No rate cut pill for RBA's AUD strength headache

UK: CBI Distributive Trades Survey – Realized grows in September against forecasts