Daily Market Report 24/12/12

Fiscal cliff deal to miss Christmas deadline

With the president in Hawaii for Christmas, it appears that the fiscal cliff issues will remain unresolved until after the holidays, with many believing a compromise will not be found until the New Year.

Infighting within the Republican Party has been one of the main problems in preventing the schedule tax cut expiries from initiating. House Speaker John Boehner’s ‘plan B’ was withdrawn due to a lack of Republican support has left congress without a solution to a problem that has been visible for months.

The holdups have seen the dollar strengthen following its recent slide; however technical analysis suggests that the dollar will once again weaken despite the fundamental news indicating otherwise.

The euro has seen continued support despite the wobbles in the US as sentiment in the euro area is still buoyant following Greece’s recent improvements showing a more secure, united front for the currency.