should be postponed, but the U.S. could still lose its AAA credit rating
America could soon lose its coveted AAA credit rating, perhaps later this week, while the career politicians in Washington to reach agreement to resolve the debt crisis in what is likely be a volatile week in global financial markets.
Monday morning, the dollar rose against the yen and Swiss franc as hopes grew that an agreement could be reached for the ceiling of $ 14.3tn loans for workers U.S. government to pay, and keep the country running. In early trading on the New Zealand dollar was just a little more than 30 years, while the Australian dollar has also increased.
However, although there is some relief that an outright failure of the United States in debt payments could now be avoided, there was lingering concern that Congress can not stay behind the $ 3TN cuts needed in exchange for a $ 3TN on the debt ceiling before the end of Tuesday - when the White House warned that the money is exhausted
Anxiety was evident on both sides of the Atlantic on the consequences of the crisis in the U.S., where data on Friday showed the U.S. economy picked up further heightened tensions on the market .
Danny Alexander, Liberal Democrat finance minister, told the BBC there was "quite negative consequences" if the crisis was not resolved. "Of course it depends on exactly how it developed, and I note that I do not expect that to happen. I think, finally, politicians on Capitol Hill can be seen that the consequences of cliff ... you are looking at if you want ... is someone who wants to step back.
"But it's something that would have a major effect on the global financial system, and in a global economy in the United States is one of our major trading partners, which could have implications important to the UK. "
bankers were also involved. A senior banker in New York, said. "This is political suicide almost insane proportions - and this is quite a self-made crisis The likelihood that the federal government fulfills its obligations remains very low, but the ripple effect uncertainty in the market sentiment is real and growing. "
Julian Jessop, chief international economist at Capital Economics, said: "It seems to be to reach agreement, but it seems none of the numbers will reassure rating agencies of the debt I 'm. pretty sure that U.S. will lose its AAA rating. "