Forex Flash: Negative ‘fiscal cliff’ headlines to boost USD in weeks ahead – Westpac (San Francisco) - From Sean Callow, FX strategist at Westpac Global Strategy Group in Sydney:

“Friday sees the first formal meeting of US political leaders in the ‘lame duck’ session of Congress to discuss the looming ‘fiscal cliff’. The latest comments from key players reinforces to us that the two sides are starting negotiations from rather distant points and as such, there will be plenty of negative headlines in coming weeks that weigh on risk assets and boost USD, which is yet again trading like a safe haven even when the bad news is generated by the US.

Mr. Callow concludes: “We doubt there will be a deal before late December.”