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.”