Forex Flash: QE3 extension may depend on “fiscal cliff” - Commerzbank
FXstreet.com (Barcelona) - Commerzbank analysts believe one of the most significant factors for the USD is whether QE3 will be extended further and should that seem questionable the USD is likely to find support. However, today's data on new home sales is unlikely to have much of an effect in this context, although the Beige Book may be more interesting, as well as negotiations about the fiscal cliff. "The leader of the majority in the Senate Harry Reid sounded rather sceptical last night and stated that "little progress" had been made in the negotiations. Should the negotiations fail the US economy would get close to a recession in 2013", wrote analyst Lutz Karpowitz, connecting the decision over QE3 to the "fiscal cliff" negotiations.