16 Oct 2013
Flash: The US Tea Party – BTMU
FXstreet.com (London) - Derek Halpenny notes that the onus is back on the Senate where there is clearly much stronger bipartisan support for a clean bill that would re-open government.
Key Quotes:
“…the onus is back on the Senate where there is clearly much stronger bipartisan support for a clean bill that would re-open government and raise the debt ceiling with the government funded until 15th January and the debt-ceiling raised until 7th February”.
“Newswires are also reporting that the latest version of the Senate deal will allow the US Treasury the flexibility to use extraordinarymeasures once the debt-ceiling is reached meaning the potential for the government finance itself through to 7th March. But assuming a Senate vote takes place today it may well still be tomorrow at the earliest that a vote
is allowed in the House and it will take only one Republican representative to potentially delay a vote beyond tomorrow”.
“So lets see what the Senate can do but with the House in disarray a Senate deal that gets the support of despondent Republicans is the most likely outcome. This leaves House Speaker Boehner vulnerable and the Tea Party isolated”.
“The dollar may react negatively to the Beige Book release this evening if it highlights the negative economic impact of current uncertainties”.
Key Quotes:
“…the onus is back on the Senate where there is clearly much stronger bipartisan support for a clean bill that would re-open government and raise the debt ceiling with the government funded until 15th January and the debt-ceiling raised until 7th February”.
“Newswires are also reporting that the latest version of the Senate deal will allow the US Treasury the flexibility to use extraordinarymeasures once the debt-ceiling is reached meaning the potential for the government finance itself through to 7th March. But assuming a Senate vote takes place today it may well still be tomorrow at the earliest that a vote
is allowed in the House and it will take only one Republican representative to potentially delay a vote beyond tomorrow”.
“So lets see what the Senate can do but with the House in disarray a Senate deal that gets the support of despondent Republicans is the most likely outcome. This leaves House Speaker Boehner vulnerable and the Tea Party isolated”.
“The dollar may react negatively to the Beige Book release this evening if it highlights the negative economic impact of current uncertainties”.