27 Sep 2013
Flash: USD supported if Republicans blink first in Debt Ceiling standoff? - BTMU
FXstreet.com (Barcelona) - Derek Halpenny, European Head of Global Markets Research at the Bank of Tokyo Mitsubishi UFJ notes that the Senate will today vote on a stop-gap spending bill which will exclude the healthcare defunding provision that was passed in the House, which will essentially mean the bill going back to the House in its changed format for the House to consider what to do next.
Key Quotes
“A shutdown of a few days would probably have little impact (although perhaps no NFP report next Friday!) but of course the longer the shutdown the more negative it becomes. For sure, the uncertainty and the debt ceiling aspect is probably already causing delays to business decisions.”
“Given the perception in the US that the Republicans are more to blame for congressional gridlock we expect them to blink first, which should help the dollar in the aftermath of a resolution.”
Key Quotes
“A shutdown of a few days would probably have little impact (although perhaps no NFP report next Friday!) but of course the longer the shutdown the more negative it becomes. For sure, the uncertainty and the debt ceiling aspect is probably already causing delays to business decisions.”
“Given the perception in the US that the Republicans are more to blame for congressional gridlock we expect them to blink first, which should help the dollar in the aftermath of a resolution.”