News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
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
More View more
Real Time News
  • (AUD Weekly Tech) Australian Dollar May Wilt, Downtrends Resume: AUD/USD, AUD/JPY, AUD/NZD, AUD/CAD https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2021/09/19/Australian-Dollar-May-Wilt-Downtrends-Resume-AUDUSD-AUDJPY-AUDNZD-AUDCAD.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/DedoOKJMXh
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/1mnOXUuBpt https://t.co/GQB0ic9Ahe
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/lx3cMSpZNc
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today: https://t.co/XtydfUNW0y https://t.co/n4NXZUovb0
  • Scoping out next week for trading the market, there are a range of high profile influences including September PMIs, Evergrande and a range of central bank decisions. Top listing on my docket is the #FOMC with my scenarios below. Full analysis: https://www.dailyfx.com/forex/video/daily_news_report/2021/09/18/SP-500-and-Dollar-on-the-Hook-for-Breaks-with-Evergrande-Fed-and-September-Trade-Ahead.html https://t.co/ZdoMJS9fp5
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/Q3Yfe6TMLw
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/6inC94w5K4
  • All eyes on the Fed on Wednesday as investors weigh on chances of a taper announcement. Get your weekly equities forecast from @HathornSabin here: https://t.co/Cv06XcvldF https://t.co/I12g2YPkdE
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/KsPiWBysiR
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/iUvhLfQgcK
Moody's Downgrades UK on Brexit Concerns Despite PM May's Speech

Moody's Downgrades UK on Brexit Concerns Despite PM May's Speech

Varun Jaitly,

Talking Points:

  • Rating agency Moody’s downgraded the UK’s sovereign credit status to Aa2 Stable from Aa1
  • The ratings agency cited fiscal pressures from mounting debt, as budget targets were revised lower
  • Moody’s also doubts the UK's ability to negotiate a sustainable free trade deal with the EU

Join Analyst Nick Cawley every Friday at 11:30 GMT as he discusses key events for the UK in the week ahead, Sign-up on the DailyFX Webinar Calendar and see what other live events are coming up.

The British Pound fell as much as half of a percent (75 pips) less than 30 minutes before Friday’s close as the rating agency Moody’s downgraded the UK’s sovereign credit rating to Aa2 with a ‘Stable’ outlook from its previous Aa1. The impact from the ratings downgrade was short lived due to a lack of liquidity, which seemed to temper the move as markets settled for the weekend. Despite the credit downgrade, the outlook for the UK economy is stable as Moody’s continues to see relative institutional and economic strength moving forward.

Moody's Downgrades UK on Brexit Concerns Despite PM May's Speech

Major global credit ratings (Source: Moody’s)

Moody’s offered two major justifications for the downgrade, citing their weaker outlook for UK’s public finances, and fiscal pressures resulting from the nation’s divorce from the EU. Moody’s sees weaker finances moving forward as the economic slowdown is accompanied by higher than previously expected government spending, and weaker revenue streams. The ratings agency also noted rising debt levels as the UK government’s fiscal spending expectations were revised from targeting a surplus in 2019-20 to keeping the deficit below 2% of GDP. Moody’s further expects the decision to leave the EU single market will have negative economic consequences for the UK, and will only put further pressure on the country’s debt levels.

One of Moody’s more provocative rationales for today’s downgrade was doubt that the UK government would be able to “secure a replacement free trade agreement with the EU which substantially mitigates the negative economic impact of Brexit”. The markets may have agreed with the rating agency’s sentiments regarding Brexit as the British Pound fell as Prime Minister Theresa May gave a speech outlining goals for the upcoming negotiations. GBPUSD fell following both the Prime Minister’s Speech and the credit rating downgrade. As the details of the split are debated, only time will tell if Moody’s cautious outlook and the market’s bearish reaction is warranted.

Moody's Downgrades UK on Brexit Concerns Despite PM May's Speech

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

DISCLOSURES