Forex Flash: President Obama outlines goals for second term – Deutsche Bank

In the United States, President Obama's State of the Union speech laid out his agenda for his second term, with plenty of focus on "reigniting" the economy, reforming the tax code, reviving the middleclass and also gun control. The president called for raising the minimum wage to $9 from $7.25 and also urged Congress to approve a $50 billion "Fix It First" program of infrastructure improvements.

“On the budget debate, Obama remained committed to reducing the budget deficit, but warned that he would support only what he deems balanced efforts that include both spending cuts and tax increases, including the closing of tax loopholes for the highest income earners and corporations. The President also urged Congress to take measures to avert the upcoming spending sequesters.” noted Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.

While on the subject of sequesters, Senate Minority Leader Mitch McConnell said late on Tuesday that it's now "pretty clear" that $85 billion in automatic spending cuts will take place, adding that he sees no sign that serious negotiations will occur to avert the sequester. McConnell said he has no interest in reviving the kind of "eleventh hour" negotiations he participated in with Vice President Biden to avert the fiscal cliff in late December.