FX Week 29 September 2013

FX Week

Fiscal stand-off to keep USD pressured

FX markets have moved on from being fixated about the Fed to being focused on fiscal policy and negotiations in Washington DC. These will come to a partial head on Tuesday October 1st, with Congress needing to pass a spending bill by then which will give the federal government authority to release the funds to pay for government spending. The Republican dominated House of Representatives passed a bill overnight that would extend current spending levels through to December 15th, but it kept contentious measures removing funding from President Obama’s flagship healthcare program for at least a year. Senate Democrats have said they will reject the plan while President Obama has said he will veto it.

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