16 Oct 2013
Flash: US fiscal impasse negative for the USD - RBS
FXstreet.com (Barcelona) - The US fiscal impasse should be negative for the USD, notes Greg Gibbs, FX Strategist at RBS.
Key Quotes
"The most likely outcome, and the best that can be expected, is that this impasse is rolled forward until early next year. This is unlikely to boost confidence in the US and is likely to delay the Fed taper for the foreseeable future."
"With activity indicators improved in the UK, Europe, Japan and China, and stabilised in EM. The prospect of a still growing but subdued US economy and ongoing Fed QE is likely to be negative for the USD."
"As such, with recent data strength and higher rate expectations in Australia and NZ, their currencies are likely to grind higher."
Key Quotes
"The most likely outcome, and the best that can be expected, is that this impasse is rolled forward until early next year. This is unlikely to boost confidence in the US and is likely to delay the Fed taper for the foreseeable future."
"With activity indicators improved in the UK, Europe, Japan and China, and stabilised in EM. The prospect of a still growing but subdued US economy and ongoing Fed QE is likely to be negative for the USD."
"As such, with recent data strength and higher rate expectations in Australia and NZ, their currencies are likely to grind higher."