Forex Flash: US budget plan already draws partisan lines – Deutsche Bank

In the US, House Budget Committee Paul Ryan yesterday released a budget plan, which aims to balance the budget in ten years. The plan also includes a partial privatization of Medicare and a repeal of Obama's health-care law. Specifically his proposal aims to reduce spending from 22.8% of GDP in 2012 to 19.1% of GDP in 2023.

According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “The deal was quickly criticized by the President and in the meantime Democrat Senate Budget Committee Chairman Patty Murray is working on a competing plan (to be released today) that would raise taxes by nearly $1 trillion over the next 10 years and spend nearly $100 billion on a new jobs package - both of which are ideas that have been firmly rejected by Republicans.” President Obama plans to release his own budget plan in April. It doesn't seem that the sides are getting much closer but it hardly seems to trouble markets at the moment.