Forex Flash: US fiscal cliff; a deal can be reached - RBS

FXstreet.com (Barcelona) - "We are cautiously optimistic that a deal can be reached to avoid the worst of the cliff face before the 31 December deadline," says RBS Head of Currency Strategy David Simmonds, expanding: "But a "grand bargain" on tax and spending is unlikely," David notes.

"Instead, policymakers may opt to postpone the expiration of most existing tax cuts and the automatic spending cuts for another six months or so, on an expectation that they can agree changes to the tax code and entitlement spending later, by the end of this window," the analyst thinks.