Forex News – US government shutdown looms as midnight deadline approaches
September 30, 2013 9:31 am
Dominating the headlines on Monday is the political crisis in Washington DC which could send the markets in a tailspin. The dollar has certainly been negatively affected, and fell to a month low against the yen in early trading on Monday.
The US government is at risk of a shut down as there is failure to reach a realistic budget agreement and to pass a temporary funding bill to keep US federal agencies open. The last government shutdown was 17 years ago.
Over the weekend, the Republican-run House of Representatives voted to delay “Obamacare” for a year (President Barack Obama’s health care law) and they want a on tax on medical devices). The Senate has to vote later on Monday on these two new changes .
By midnight on Monday (US time) if the Senate does not agree with the House’s changes, then 800,000 federal workers would be furloughed on Tuesday (sent home and will not be paid).
A shutdown could reduce fourth-quarter economic growth by as much as 1.4 percentage points, depending on its duration, according to economists. The biggest effect would come from the output lost from furloughed workers.
Markets have been cautious, and dollar/yen remains near month lows around 97.75 yen.
Dominating the headlines on Monday is the political crisis in Washington DC which could send the markets in a tailspin. The dollar has certainly been negatively affected, and fell to a month low against the yen in early trading on Monday.
The US government is at risk of a shut down as there is failure to reach a realistic budget agreement and to pass a temporary funding bill to keep US federal agencies open. The last government shutdown was 17 years ago.
Over the weekend, the Republican-run House of Representatives voted to delay “Obamacare” for a year (President Barack Obama’s health care law) and they want a on tax on medical devices). The Senate has to vote later on Monday on these two new changes .
By midnight on Monday (US time) if the Senate does not agree with the House’s changes, then 800,000 federal workers would be furloughed on Tuesday (sent home and will not be paid).
A shutdown could reduce fourth-quarter economic growth by as much as 1.4 percentage points, depending on its duration, according to economists. The biggest effect would come from the output lost from furloughed workers.
Markets have been cautious, and dollar/yen remains near month lows around 97.75 yen.
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