U.S. Dollar Mixed Despite Tentative Agreement on Plan to Avoid Default

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http://www.forexforexmarkettrading.com/2011/08/us-dollar-mixed-despite-tentative.htmlThe U.S. Dollar found brief support at the start of the Asian session on Monday after U.S. President Barack Obama announced that Congressional leaders had reached an agreement on reducing the deficit while simultaneously raising the debt ceiling, in order to prevent the world’s largest economy from defaulting on its obligations on August 2. Although the agreement hasn’t been passed through both chambers of Congress yet, the bipartisan agreement, on the surface, appears to appease both Democrats and Republicans alike, with a decrease in spending, an increase in revenue (note: tax cuts stripped for wealthy, no tax hikes) and ultimately a hike in the debt ceiling all scheduled to take place.

President Obama outlined the following details of the plan last night, which, if passed into law, would allowed the country to remain solvent and pay its obligations beginning August 3, when substantial dispersions are due to entitlement programs, such as Social Security. Below are the main points:

“The first part of this agreement will cut about $1 trillion in spending over the next 10 years -- cuts that both parties had agreed to early on in this process.”
“We have to ask the wealthiest Americans and biggest corporations to pay their fair share by giving up tax breaks and special deductions.”

• “We need to make some modest adjustments to programs like Medicare to ensure that they’re still around for future generations.”

“The second part of this agreement is so important. It establishes a bipartisan committee of Congress to report back by November with a proposal to further reduce the deficit, which will then be put before the entire Congress for an up or down vote.”

Source:
http://www.forexforexmarkettrading.com/2011/08/us-dollar-mixed-despite-tentative.html