In a late night session, the US Senate approved a deal to avert the fiscal cliff. When markets open after the New Year’s holiday, we could get some rises in stocks and and a weaker dollar. We’ve seen this process begin before the holiday. However, this is far from a comprehensive long term solution. Here are 3 things to worry about. The Senate voted 89 to 9 in favor of a deal that avoids tax hikes for individuals earning up to $400K a year and families earning up to $450K a year. Obama was already quick to celebrate the fact that Republicans retreated from their original refusal to raise any taxes. But nothing is certain yet. House approval: The deal needs to be approved by the House, where Republicans are in control. It’s hard to believe that Republicans in the House will reject or amend a deal made in the Senate, but anything is possible. It’s important to remember that a new House will begin working on Wednesday. The newly elected House has a smaller Republican majority. Could the outgoing House still change the course of the deal? Temporary Delay in Sequester: The deal postpones the automatic spending cuts known as the “sequester” by only two months. Reaching a long term agreement on spending cuts, whether in entitlements (important to Democrats) or the military (important to Republicans) is still far. No debt ceiling agreement: With all the commotion about the fiscal cliff, the debt ceiling issue is still open: the US has a debt of $16.4 trillion dollars. The current debt ceiling will be reached in February as well. Geithner already said that the Treasury is taking accounting measures to encounter the situation. All in all, politicians did what politicians always do: reach a partial and temporary agreement. The situation now is better than it was before the deal was struck. However, a smaller crisis is still looming at the end of February. It will be interesting to see if the new House, where Tea Party Republicans command a smaller majority, will work differently: if moderate Republicans and moderate Democrats will find a way to push forward compromises rather than stick to partisan lines. Further reading: Trading the Fiscal Cliff: Different Currencies for Different Scenarios Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Currency Pair of 2012: NZD/JPY – The Classic Carry Trade Yohay Elam 10 years In a late night session, the US Senate approved a deal to avert the fiscal cliff. When markets open after the New Year's holiday, we could get some rises in stocks and and a weaker dollar. We've seen this process begin before the holiday. However, this is far from a comprehensive long term solution. Here are 3 things to worry about. The Senate voted 89 to 9 in favor of a deal that avoids tax hikes for individuals earning up to $400K a year and families earning up to $450K a year. Obama was already quick to celebrate the fact… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.