During the past weeks, the Federal Reserve has confirmed that employment must improve before changing current monetary policy. Under these conditions, the US dollar should depreciate further and the EUR/USD could challenge 1.38 over the short term.

The standoff between Republicans and Democrats over “Obamacare” is currently unfolding. However, the real test will occur on October 17, when a decision on whether to raise the debt ceiling will need to be made. In the meantime, U.S. stocks are “oversold” at current levels and could rebound to 1700/1720 in the short term.

Five years since the deterioration of the financial crisis, the Federal Reserve is close to modifying its policy.