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Flash: Syrian situation remains tenuous ahead of vote Wednesday – Deutsche Bank

FXstreet.com (Lisbon) - The situation in Syria remains fluid as President Obama said in an interview with major media networks yesterday that a proposal to get Syria to surrender its chemical weapons to an international body is a “potentially positive development” and that a diplomatic solution remains his preferred course of action, notes Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.

Key quotes

“On the domestic diplomacy front, he commented that he isn’t confident that Congress will approve a resolution to use military force against the Assad regime. Perhaps because of this, Senate Majority Leader Harry Reid is delaying the first full Senate vote on a resolution to attack Syria.”

“The vote had been scheduled for Wednesday. Reid said that it wouldn't be beneficial to hold the vote while international discussions continue. We’ll get more detail on Obama’s next steps when he speaks on Tuesday night (Washington time) in a speech to be aired on US prime time television.”

EUR/USD back to positive territory

The EUR/USD remains quite steady in a narrow range Tuesday, consolidating the previous day’s gains as risk sentiment improves amid receding concerns over Syria.
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Syria yields to calls for disarmament

Syria’s Foreign Minister Walid al-Moualem announced on Tuesday that the country would accept Russia´s proposition to hand over its chemical weapons and place them under international control in order to “remove the grounds for American aggression.”
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