Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Major Pairs Analysis: France Downgraded By Fitch

Published 07/15/2013, 04:45 AM
Updated 04/25/2018, 04:40 AM
EUR/USD
In May, the European Commission told French President Francois Hollande that he needs to press ahead with an overhaul of the pension system and labor market. The IMF said the French government has no more room to raise taxes to plug its budget deficit. France lost its top credit rating at Fitch Ratings, which highlighted concern about lack of growth and the buildup of debt in Europe’s second-largest economy. Budget risks “lie mainly to the downside, owing to the uncertain growth outlook and the ongoing euro zone crisis, even assuming no wavering in commitment to fiscal consolidation,” Fitch said in a statement.
<span class=EUR/USD" width="624" height="468" />
GBP/USD
Sterling strengthened from a three-year low against the greenback even after a government report showed Britain’s industrial output shrank unexpectedly in May. U.K. government bonds rose this week, with 10-year yields falling the most in four months before the Bank of England publishes the minutes of its July meeting, the first led by new Governor Mark Carney. The pound posted its first weekly advance in a month versus the dollar after Federal Reserve Chairman Ben S. Bernanke said America’s economy still needed stimulus. The pound’s rebound this week against the dollar was driven mostly by Mr. Bernanke’s comments, which led to a selloff in the dollar.
<span class=GBP/USD" width="624" height="468" />
USD/JPY
The Yen started at 99.30 remaining in its range on the edge of the 100 price level after the Bank of Japan held rates and policy. Mr. Kudora’s press conference was on a positive note, as the Bank upgraded their assessment of the economic situation. Leading to a long weekend in Japan, the yen is quiet, trading within range and between its 50‐day and 100‐day. The BoJ raised its economic assessment, stating that the economy is recovering moderately. The yen, however, was notably quiet. Focus next week is likely to be on developments leading to the July 21 upper house election.
<span class=USD/JPY" width="624" height="468" />
USD/CAD
The Canadian fell from its strongest level in three weeks, as U.S. debt maintained an interest-rate advantage over Canadian counterparts on the country’s stronger economic growth prospects. The currency weakened for the first time in five days as the yield advantage of U.S. 10-year notes to Canadian government debt was 12 basis points, compared to a 19-basis-point difference on July 5 that was the highest since 2011. The Federal Reserve outlined a timeline last month for tapering policies that have kept interest rates low to stimulate the economy. The Canadian currency remained lower, even as consumer confidence in the U.S. fell to 83.9 in July from 84.1 the previous month. The Canadian dollar dropped 0.3 percent to C$1.0395 per U.S. Dollar.
<span class=USD/CAD" width="624" height="468" />

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.