U.S congress reached a deal to avoid default

Monday, 1 August 2011 12:01

The United States managed to reach a compromise as President Barack Obama announced; a deal was agreed on between the Republicans and the Democrats.  In order to avoid default, debt would be reduced by $1 trillion over 10 years. 

The debt deal will be voted for in the House of Representatives on Monday, 1st August. 

Although there was an air of relief after the announcement, it isn't positive whether this be sufficient enough to convince the credit rating agencies to keep U.S's brilliant AAA rating.

The Euro surged from a low of 1.4352 to 1.4401.  Continuing its rise, Euro/U.S Dollar reaching a high at 1.4422 in today's trading session.