Forex Flash: US political propaganda dominating cuts agenda - Societe Generale

Kit Juckes, Global Head of Currency Strategy at Societe Generale gets the feeling the despite the rhetoric, US political protagonists quite like the idea of some fiscal tightening which can be blamed on the other team.

However, regardless, the sequester cuts 2013 GDP forecasts by between 0.2% and 0.5% and fuels the risk averse mood as the market awaits payrolls on Friday and a very limited period of economic data in the interim.