View full page at forexfactory.com

 

If U.S. goes over fiscal cliff, dollar could fly

From reuters.com

In times of trouble, investors tend to flee to the comfort of the U.S. dollar -- even when the trouble is emanating from the United States. If Congress fails to reach a deficit reduction deal by the end of the year, it will automatically trigger big spending cuts and tax increases in 2013. This so-called "fiscal cliff" would hit the still-recovering U.S. economy hard. But rather than bring the dollar down with it, the automatic spending cuts could be viewed as a sign of fiscal discipline that would benefit the currency. Even if a protracted period of negotiations injects a heavy level of uncertainty into the ... (full story)

Story Stats

  • Posted:
  • Category: Breaking News