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30 Sep 2013
Flash: US Gov Shutdown may begin tomorrow - BTMU
FXstreet.com (Barcelona) - Derek Halpenny, European Head of Global Markets Research at the Bank of Tokyo Mitsubishi UFJ believes that there is a risk that the US Government may well shut down tomorrow.
Key Quotes
“The House yesterday approved a fiscal year 2014 stop-gap spending bill with the inclusion of a one-year delay to ‘Obamacare’ – something the Democrats and the White House will not agree to.”
“The House Majority Whip did state that if the Senate alters the House bill as expected by removing the ‘Obamacare’ element that there were some “options” to keep the government funded. That seems pretty slim at this stage and hence a shutdown may well begin tomorrow.
“We view this initially as a dollar negative event but the longer the shutdown goes on and the more divisive it becomes ahead of the debt-ceiling deadline, the greater the risk that it begins to quickly affect broader markets outside the US and that’s when dollar buying may emerge.”
Key Quotes
“The House yesterday approved a fiscal year 2014 stop-gap spending bill with the inclusion of a one-year delay to ‘Obamacare’ – something the Democrats and the White House will not agree to.”
“The House Majority Whip did state that if the Senate alters the House bill as expected by removing the ‘Obamacare’ element that there were some “options” to keep the government funded. That seems pretty slim at this stage and hence a shutdown may well begin tomorrow.
“We view this initially as a dollar negative event but the longer the shutdown goes on and the more divisive it becomes ahead of the debt-ceiling deadline, the greater the risk that it begins to quickly affect broader markets outside the US and that’s when dollar buying may emerge.”