Forex Flash: US still shows sharp divide on income taxes - Westpac (Barcelona) - US negotiations over the ‘fiscal cliff’ are continuing, explains FX Westpac Strategists FX, expecting that "Friday’s meeting between President Obama and Congressional leaders could be the next major event on this front."

Mr. Callow notes: "At this stage, there is a sharp divide on income taxes, with Republicans willing to consider limiting writeoffs and other loopholes but not higher marginal rates. Treasury Sec Geithner today said tax rates would have to increase on the highest earners as capping deductions would not raise enough revenue.