We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Oil - US Crude
Bullish
Bitcoin
Bearish
More View more
Real Time News
  • RT @YuanTalks: #China confirmed 889 new cases of #coronavirus, taking the total number of confirmed cases to 75,465 as of Thursday and the…
  • RT @Rover829: Reuters: CHINA REPORTS 889 NEW CONFIRMED CASES OF CORONAVIRUS ON MAINLAND ON FEB 20 VS 394 ON FEB 19 (this means more than ha…
  • RT @globaltimesnews: #Coronavirus halts most China-Europe freight trains until mid-February: industry insiders. https://t.co/L6gdcnQqIl htt…
  • RT @RANsquawk: Japanese Jibun Bank Flash PMIs (Feb): - Manufacturing 47.6 (Prev. 48.8) - Services 46.7 (Prev. 51.0) - Composite 47.0 (Prev.…
  • Bank of Japan's Governor Kuroda: Consumption drop isn't fault of sales tax alone. Storms, unseasonable weather also hitting spending. Capex, govt. policies supporting moderate expansion -BBG
  • South Korea confirms 52 further cases of the #coronavirus , bringing total to 156 -BBG
  • Bank of Japan Governor Haruhiko Kuroda - Cannot measure impact of #coronavirus yet - Virus likely to hit supply chains, tourism and exports - Will take appropriate measures as necessary but doesn't believe policy measures are needed at this time (BBG)
  • When your girlfriend says she’s visiting the Fed for work: https://t.co/sZjs9aW3eJ
  • The $GBP recoiled from chart resistance against the US Dollar, setting the stage for prices to resume a bearish trend reversal triggered mid-January. Get your market update from @IlyaSpivak here:https://t.co/lVpyZkIfJt https://t.co/zCGq8Kpoqy
  • The Australian Dollar outlook may shift further bearish after $AUDUSD took out key support. This followed a broadly pessimistic day in stocks as the haven-linked US Dollar soared #AUD #USD - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/02/21/Australian-Dollar-Outlook-May-Deepen-Bearish-AUDUSD-Clears-Support.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/bIxUJhwp30
U.S. Dollar Mixed Ahead of Holiday Weekend, Moody’s Maintain AAA Rating For U.K.

U.S. Dollar Mixed Ahead of Holiday Weekend, Moody’s Maintain AAA Rating For U.K.

2010-07-02 11:13:00
David Song, Currency Strategist
Share:

Talking Points
•    Japanese Yen: Mixed Amongst The Major
•    Pound: Moody’s Expects U.K. To Retain AAA Rating
•    Euro: Unemployment Holds at 12-Year High
•    U.S. Dollar: Non-Farm Payrolls, Factory Orders on Tap


Meanwhile, German central bank President Axel Weber encouraged commercial banks to come up with a contingency plan should they fail the bank stress test, and said that results could force some lenders to recapitalize according to an article in the Financial Times.

At the same time, the economic docket showed the annual rate of unemployment in the Euro-Zone held at 10.0% for the third consecutive month in May following a downward revision in the previous month’s reading, which is the highest level since August 1998, and the ongoing weakness in the real economy may lead the European Central Bank to maintain a loose policy stance going forward as the governments operating under the single-currency plan to scale back on public spending and reduce the budget deficit. At the same time, producer prices in the euro-region advanced 0.3% during the same period after expanding a revised 1.0% in April, while the annualized rate increased 3.1% from the previous year to mark the fastest pace of growth since November 2008. However, businesses may become increasingly reluctant to pass on higher costs to consumers as households continue to face the deterioration in the labor market paired with tightening credit conditions, subdued growth in consumer prices would certainly give the ECB scope to support the economy throughout the second-half of the year as they maintain their one and only mandate to ensure price stability.

The British Pound extended the previous day’s advance and rose to a fresh weekly high of 1.5213 during the European session, and the short- term rally could lead the GBP/USD to retrace the sell-off from the April highs as the economic outlook for the U.K. improves. Moody’s Investor Services said “the U.K.’s debt affordability would remain consistent with an AAA rating” should the new government successfully implement its austerity measures, but went onto say that the budget-cutting initiatives could have a negative impact on the recovery as the private sector remains weak. Meanwhile, construction in Britain expanded at a slightly slower pace in June, with the PMI reading falling back to 58.4 from 58.5 in May, and fears of a protracted recovery paired with the cut in government spending could lead the BoE to support the economy over the coming months.

U.S. dollar price action was mixed during the overnight trade, with the USD/JPY rallying to a high of 88.20, and the greenback could face increased volatility going into the North American session as employment in the world’s largest economy is expected to contract for the first time in six-months. U.S. non-farm payrolls are forecasted to fall -130K in June, while the annual rate of unemployment is projected to rise to 9.8% from 9.7% in May, and the data could spark increased volatility in the major exchange rates as investors weigh the outlook for future growth. At the same time, average hourly earnings are anticipated to rise 0.1% during the same period after expanding 0.3% in the previous month, while factory orders are expected to fall 0.5% in May after increasing 1.2% in the month prior.

Will the ECB Implement Its Exit Strategy Further Later This Year? Join us in the Forum

Related Articles: 

Risk Appetite Offers Mixed Signals with the S&P 500, Dollar and Gold All Diving Simultaneously


To discuss this report contact David Song, Currency Analyst: instructor@dailyfx.com

07.02_MB

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.