French Downgrade doesn’t hurt risk
City Index November 20, 2012 1:40 PM
<p>The highlight this morning in FX space has been the news that ratings agency Moody have downgraded France to Aa1 although this should not be […]</p>
The highlight this morning in FX space has been the news that ratings agency Moody have downgraded France to Aa1 although this should not be a great surprise as they already placed France on a negative outlook with ratings agency S&P having already cut France’s rating by one notch. The single currency dipped 45 points on the news which isn’t earth shattering as the market takes the stance that earlier in the crisis the EFSF rating would have been significantly hurt by this news.
The BOJ kept rates and policy measures unchanged overnight as expected though the current Japanese Governor seemed to take a swipe at the LDP leader Abe with the below comments
*Shirakawa: Directly underwriting debt is considered taboo
*Shirakawa: Expect GOV to strengthen growth potential
BOJ GOV Shirakawa: Any debate on revising BOJ law must be done with caution, spending good amount of time
BOJ GOV Shirakawa: Seeking three percent inflation in Japan is unrealistic
Finally the RBA minutes released overnight suggested the Australian central bank was still open to further interest rates cuts, but judged it was appropriate to leave policy unchanged in November as Global economic data on balance has shown a more positive tone in recent months.
Supports 1.2760-1.2720-1.2690 | Resistance 1.2875-1.2900-1.2960
Supports 81.10-80.85-80.05 | Resistance 81.50-81.85-82.50
Supports 1.5885-1.5850-1.5825 | Resistance 1.5925-1.5975-1.6000
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