The fact that the US government has been forced in to this closure by a small group of Republicans is extraordinary when looked at from outside. I am in no position to say who is right and who is wrong in this debate, but one would have hoped that somehow, the national interest would have overcome political posturing before committing to this action. Perhaps the President was too forceful in his speech before the vote, in seemingly leaving no room for debate – and perhaps that hardened the attitude in his opponents. Perhaps…but either way, this should never have happened.

The FX market has reacted calmly to the news because, beyond embarrassment, nothing is going to materially change in the US economy right now – the issue that will alter that statement is time. The longer this drags on, the greater chance of monetary damage to the economy, the greater chance that growth will be inhibited, the greater chance that the Fed will not feel confident enough to start the withdrawal of monetary stimuli and the greater chance that the $ will continue to slide. It is difficult at this stage to talk about what should be, after what has happened, but isn`t it inconceivable that the deadlock would get to the stage where the US economy would be affected?

The point has been made, the debate over health care and its cost has been put under the spotlight; to push this further – to the point that the economy starts to suffer would surely disgust the American people, and further alienate politicians of all shades.So for me, a further slide in the $ is possible if the debate rages further beyond the already breached boundaries of common sense, but I would prefer to hope for a quick return to sanity and a prompt resolution to this farce.