10 Oct 2013
Flash: Fear of default peaked?
FXstreet.com (London) - Research teams at BBH said, “The news stream is shaping the foreign exchange market in arguably a clearer way than has been the case recently”.
Key Quotes:
“As we noted here yesterday, the level of anxiety and fear of a US default appeared to have peaked on Tuesday, perhaps helped by an olive branch of sorts offered by President Obama. He seems to support a short-term extension of the debt ceiling and spending authority, while new negotiations can take place”.
“Even though some of the rhetoric remains heated, there is growing evidence that the worst of this round has passed, and there is movement toward a short-term fix”.
“As Winston Churchill once famously quipped about Americans: they are willing to do the right thing after exhausting all the other possibilities. The other alternatives have been exhausted, it would seem”.
“Moreover, that the dollar advanced on indications of Yellen's nomination also seemed to suggest perceived bad news had been discounted”.
Key Quotes:
“As we noted here yesterday, the level of anxiety and fear of a US default appeared to have peaked on Tuesday, perhaps helped by an olive branch of sorts offered by President Obama. He seems to support a short-term extension of the debt ceiling and spending authority, while new negotiations can take place”.
“Even though some of the rhetoric remains heated, there is growing evidence that the worst of this round has passed, and there is movement toward a short-term fix”.
“As Winston Churchill once famously quipped about Americans: they are willing to do the right thing after exhausting all the other possibilities. The other alternatives have been exhausted, it would seem”.
“Moreover, that the dollar advanced on indications of Yellen's nomination also seemed to suggest perceived bad news had been discounted”.