Republican Leadership: U.S. Will Meet Obligations

The Speaker of the House John Boehner stated on Thursday that the U.S. will meet its debt obligations. This echoes the statements Treasury Secretary Timothy Geithner made earlier in the week. The U.S. government hit the debt ceiling on May 16th, and the Treasury has had to take extreme measures to keep the government under the limit. Republicans in congress have held up the passage on the debt ceiling, in an effort to stay true to campaign problems in regards to reducing government spending. Should the government fail to "meet its obligations" it would amount to a default. The affects of a default are uncertain, but Federal Reserve Chairman Ben Bernanke has warned that there would be dire consequences. If the Republicans are able to get their way and negotiate a reduction to the national deficit, it may prove bullish for the dollar. PowerShares DB US Dollar Bullish Index

might be something traders could consider.