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3 Oct 2013
Stocks slide despite cracks showing in Republican debt stand-off resolve
FXstreet.com (London) - As the US heads into the third day of its partial government shutdown, there are signs that individual Republicans are prepared to side with Democrats in order to end the deadlock. There are now 18 House Republicans who have indicated that they would support a “clean” continuing resolution bill to temporarily extend the US debt ceiling from its current USD6.69 trillion level. The bill would remove any defunding or delay to Obamacare.
Despite having cast himself as the president who would “reach across the divide” rather than exacerbate bipartisan bickering, Obama has so far flatly refused to negotiate on the bill.
Combined with a full block vote of 200 House Democrats, the 18 Republican votes would be enough to send a bill to the Democrat-controlled Senate.
Despite signs that there is a weakening of Republican resolve, stocks have fallen in the US session, the S&P is down 0.68 percent so far on debt ceiling concerns.
The dollar is also falling against the euro, EUR/USD up 0.35 percent, but is trading in a tight range between 1.3590 and 1.3625.
Despite having cast himself as the president who would “reach across the divide” rather than exacerbate bipartisan bickering, Obama has so far flatly refused to negotiate on the bill.
Combined with a full block vote of 200 House Democrats, the 18 Republican votes would be enough to send a bill to the Democrat-controlled Senate.
Despite signs that there is a weakening of Republican resolve, stocks have fallen in the US session, the S&P is down 0.68 percent so far on debt ceiling concerns.
The dollar is also falling against the euro, EUR/USD up 0.35 percent, but is trading in a tight range between 1.3590 and 1.3625.