16 Oct 2013
Market exuberance helps lift dollar and equity markets as US set for debt ceiling deal
FXstreet.com (London) - Markets have jumped on the news that they’ve been waiting for all day. The dollar has climbed along with equity markets on reports that House Speaker John Boehner is set to get behind the Senate’s plan to extend the debt ceiling and re-open government.
The deal would likely extend the debt ceiling to 7 February.
The Dow is already up 1.13 percent. USD/JPY has gained 0.66 percent to USD98.8100.
AUD/JPY has also leapt on the news, up 0.64 percent.
Boehner will be hoping that Tea Party conservatives such as Ted Cruz do not move to delay a deal. Cruz spoke for 22 hours in advance of the government shutdown, pushing for any debt ceiling increase to be tied to a one-year delay in the implementation of the Affordable Care Act.
Although a skeleton agreement seems to be in place, it would still need to go through the House where it would likely pass on the Democratic bloc aided by minority Republicans, before going to the senate.
Even if everything goes smoothly, it would still be a push for the bill to be signed by President Obama before the midnight deadline.
The deal would likely extend the debt ceiling to 7 February.
The Dow is already up 1.13 percent. USD/JPY has gained 0.66 percent to USD98.8100.
AUD/JPY has also leapt on the news, up 0.64 percent.
Boehner will be hoping that Tea Party conservatives such as Ted Cruz do not move to delay a deal. Cruz spoke for 22 hours in advance of the government shutdown, pushing for any debt ceiling increase to be tied to a one-year delay in the implementation of the Affordable Care Act.
Although a skeleton agreement seems to be in place, it would still need to go through the House where it would likely pass on the Democratic bloc aided by minority Republicans, before going to the senate.
Even if everything goes smoothly, it would still be a push for the bill to be signed by President Obama before the midnight deadline.