The leaders of Wall Street paid the US President a visit with the sole aim of underlining the potential catastrophic consequences a government debt default would have on both the US and global economy. Barak Obama continued to stress the extent of his efforts in attempting to come to an agreement over Budget negotiations; however, it is clear that the only major sticking point remains around his healthcare Bill. Nevertheless, markets remain in a positive mood as traders remain confident that a decision will be made in the next few days.

In other news, the UK continued to show signs of a strong-performing economy following the release of some impressive construction figures. Crucially, it is the turn of the service sector to release its latest set of results for September with forecasts expecting growth to at least match August’s number. Economic data has plenty of potential to cause a few shockwaves with service sector data also due from Germany, retail sales figures from Europe and durable goods orders from the States.

Sterling

The pound was buoyed once again by the release of some impressive construction figures. Growth in house building reached a number not seen for almost a decade on the purchasing manager’s housing index and reflected a sector which has quickly turned the corner in the last 12 months and is proving to be an important part of a growing jobs market. The service sector will round off the release of PMI figures for September with forecasts predicting strong levels of growth in what is the largest part of the UK economy.

US dollar

The US dollar continues to be hampered by political uncertainty and the ongoing negotiations around increasing the debt ceiling in the US. ADP employment numbers failed to inspire traders with a lot of the focus now on crucial non-farm payrolls. Durable goods orders will also be released as well as weekly jobless claims.

Euro

The single currency was supported by the president of the European Central Bank, Mario Draghi, after he commented on the positive attitudes taken by European governments in their attempts to reduce their borrowing and implementing the necessary financial reforms required to turn around economic performance. The ECB decided to keep interest rates on hold at 0.5 per cent which was fully expected by financial experts with much of the single currency’s strength triggered during the press conference that followed.