usa News has hit the newswires that there will be no vote on ‘Plan B’ this evening due to lack of Republican support. Speaker John Boehner has pulled his own bill, and his office has just released a statement that says, in part: “The House did not take up the tax measure today because it did not have sufficient support from our members to pass. Now it is up to the President to work with Senator Reid [(D)] on legislation to avert the fiscal cliff.” This is significant because the Speaker could not persuade his own Republican members to back his plan against President Obama’s offers and proposals on the matter. The US dollar is well bid across the board on this news, as market participants flee to safety.

GOP lawmakers moving toward “fiscal cliff” dead-end

The Republican-lead House of Representatives on Capitol Hill is moving ahead with a bill aimed at pressuring President Obama for a “fiscal cliff” deal. A second vote on taxes is expected later this evening; the House is in recess for now, but the Ways and Means staff is said to be on the floor ready for the tax debate to begin.

In the end, even if House Speaker John Boehner's "Plan B" were to pass, political analysts say that it stands no chance of being accepted by the Democratic-lead Senate or by the President. Time is quickly running out for US lawmakers to reach a deal to prevent a self-inflicted economic recession.

At the time of writing, the U.S. dollar is finding buying interest across the board, likely underpinned by this sour mood surrounding the “fiscal cliff” developments, and on news that S&P has just downgraded Cyprus’ foreign long-term issuer credit rating to CCC+ from B.

Barack Obama threatens to veto GOP's 'plan B'

US Fiscal Cliff talks stalled again on Wednesday as President Barack Obama expressed his opposition towards the latest plan put forward by the Republicans who intend to pass their own alternative bill on taxes through the House later today.

The so-called “plan B” proposed by House Speaker John Boehner anticipates extending the tax cuts on people with income below 1 million dollars and most probably will not pass through the Senate where Democrats have a majority.

Barack Obama, who made a proposition on Monday to raise the threshold for tax increases to 400.000 dollars, accused the opposing party of delaying the negotiations only to "score a point out of the president" and warned that he would veto the bill.

Neverheless, Rabobank Senior US Strategist Philip Marey believes that the fiscal cliff deal can still be reached on time: “The ideological debate about tax rate hikes has been transformed into a bargaining process about the threshold for tax hikes. So they should be able to find a compromise somewhere between 400K and 1 million.”