FX.co ★ Fundamental Analysis, August 02, 2011

Obama announced yesterday afternoon with great fanfare that both parties (the ruling Democratic and Republican opponent) had reached an agreement to raise the deficit in the global power and end the speculation. It was passed in the House late yesterday with 269 votes in favor and 161 against. Today you will pass the Senate where it is taken for granted approval by a majority ruling as a final movie must exit the printer directly to the Oval Room of the White House for Obama to sign and enter into force.

Several scholars have lambasted the agreement, considering a halt to the recovery of an economy already weakened. The tax cuts in times of economic recovery may be a bucket to cool the numbers of recovery. Another issue that is unclear and remains in suspense more than one is how they will react rating agencies Moody's, Fitch and Standard & Poor's to such a decision because even though the deficit rising default preventing little information exists on the target the tax cut.

The initial reaction was positive on the market, perhaps too impulsive. Both in Asia, America and Europe were the main selective welcomed the news coming from the U.S. Asian stocks were infected aggravated further by the stronger yen, which undermines the possibilities of a country's export sector clearly exporter and Japan: Nikkei -1.20%, -1.07% and Hang Seng Shanghai Comp. -0.91%.

In the currency market's initial reaction was the massive sale of dollars but gradually returned to investors wanted green haven. The EUR / USD after the announcement was only 1.4452 cracked down hard and now we're picking at 1.4170 where it looks fetching 1.4156 today to make a double floor. A similar situation of the sterling tried three times higher on drilling unsuccessful 1.6470, a level from which slumped to 1.6235. The tone is the same pairs that include the Australian dollar, Canadian, New Zealand, have called ground against the U.S. dollar.