French Downgrade doesn’t hurt risk

<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


Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.