The market is just too dangerous to trade amid the political stalemate in Washington, analysts told CNBC.
"We go up, we go down, there's absolutely no continuity one way or the other and it's very difficult to make any sort of positional bets because every single hour we change sentiment based on what the new headline is," said Boris Schlossberg, managing director of BK Asset Management, on CNBC Asia's Squawk Box.
"The only take-away [from the news] is that it's incredibly treacherous to trade right now," he added.
Stocks on Wall Street closed higher Thursday, while the U.S. dollar index rose to a two-week high on news that Republicans had proposed a six-week debt-ceiling increase to avoid default.
However, shortly thereafter reports that President Barack Obama had rejected the deal prompted sharp declines in U.S. stock futures markets, which were later pared following reports that Obama had not fully rejected the deal.
Asian markets enjoyed a relief rally Friday following Wall Street's strong performance but traders remained cautious as they digested mixed signals out of Washington.
"It's all up in the air right now. We don't really know what is going to happen. The market is reacting to the news as it comes out and we really want to gather information and see what happens into next week," said Chris Tedder, research analyst at FOREX.com.
"It might be a chance to take a breather, reassess your position and reenter come next week," he added.