All about Europe today

<p>The USD has been trading on the back foot following comments from ratings agency Moody’s that unless the US can produce a credible debt reduction […]</p>

The USD has been trading on the back foot following comments from ratings agency Moody’s that unless the US can produce a credible debt reduction plan the US will face a very real prospect of a credit downgrade. It seems expectations for more stimulus from the Fed continues to build and news that today’s German Constitutional court vote will go ahead as planned has helped risk sentiment and the USD lower.

The single currency received a further boost following comments from Spain’s PM Rajoy that he is considering asking for help from the ECB’s bong buying programme.

The market considers that the probability is low of the ESM being vetoed. Constitutional complaints have become common-place in German-euro politics during the past two decades. There may be some conditions to the ruling with speculation of court ruling could be that the ESM liability is capped thus causing further delays.

The other major event for today is the Dutch elections to determine the allocation of 150 seats in the lower house. There will be two focal points of this election, the formation of a coalition government and more immediately, the 2013 budget which faces parliament on 18 September. No major party is expected to reach the 76 seats required to form a majority


Supports 1.2840-1.2805-1.2750 | Resistance 1.2885-1.2905-1.2945


Supports 77.65-77.20-76.55 | Resistance 78.00-78.30-78.80


Supports 1.6050-1.6020-1.5960 | Resistance 1.6085-1.6100-1.6150


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