S&P slashes France’s rating to AA; will non-farm payrolls data disappoint?
City Index November 8, 2013 2:21 PM
<p>The euro was the main focus in yesterday’s trading, with a surprise rate cut from the ECB making it drop over a hundred points on […]</p>
The euro was the main focus in yesterday’s trading, with a surprise rate cut from the ECB making it drop over a hundred points on initial reaction. This followed with positive US data in the way of GDP at 2.8%, when the market was expecting a 2.0% figure due to the effects of the shutdown. This sent USD higher, causing more pain for the euro which dropped another 100 points. After the dust had settled and Draghi had finished talking the euro made a bit of a recovery of over 100 points.
Today the euro has stayed around its open level. France’s credit rating was cut by the S&P to AA from AA+, but France’s Finance Minister Pierre Moscovici commented that the S&P downgrade was based on ‘inaccurate’ analysis’. German trade surplus increased more than forecast on exports.
In the Asian session AUD saw a drop after the RBA kept its dovish tone on growth in 2014 and kept the rate cut scope. This was erased after Chinese exports rose more than estimated after the drop last month, giving the Aussie some strength.
The USD is the main focus today after making and keeping hold of the gains from yesterday’s news and bringing the tapering question back into play, with a good GDP figure. We have the NFP data release today, and most are expecting around 125k as compared to the previous 148k and an expected rise in the unemployment rate to 7.3%. The shutdown is expected to have affected this month’s figures, but as GDP seemed not to be affected we could be in for an interesting afternoon.
Supports 1.3375 1.3340 1.3295 | Resistance 1.3450 1.3500 1.3545
Supports 97.60 97.35 96.95 | Resistance 98.30 98.60 99.25
Supports 1.6000 1.5980 1.5950 | Resistance 1.6125 1.6200 1.6260
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