Bobbys Corner-Open Market-Nov.10.2009
November 10, 2009 by Bob Slade · Leave a Comment
Good Morning:
The worst news of the evening was Fitch Ratings stating that the UK is the most at risk of any of the major economies from losing their AAA credit rating. The concern is mainly about their budget deficit, as the global recession took a bit out of UK tax revenues and caused a large jump in state sponsored welfare costs.
The GBP dropped overnight, and the USD was mostly weaker with the EUR/USD pair reaching 1.5020.
Asian equity markets were higher, and European stock indexes were mixed. MBIA (the world’s largest bond insurer), missed estimates for Q3. US Futures are lower at this time.
Oil: $79.35 Gold:$1099.40
HAVE A GREAT DAY & GOOD LUCK
NZDUSD has a volatile day, but could be topping on Fitch downgrade
July 16, 2009 by Greg Michalowski · Leave a Comment
Fitch downgraded the outlook for New Zealand’s AA+ sovereign credit rating to negative from stable and in the process warned that severe economic imbalances mean the government should dramatically tighten its purse strings.
The surprise move led to a sharp fall in the value of the NZDUSD. However, just when you think it is safe to go outside (or short NZDUSD) the pair retraced off the 38.2% support level and rebounded back higher.
However, the pair was not able to extend to new highs (or above yesterdays closing levels) and the price has started to move lower again - albeit at a slower pace. The 0.6388 level will be eyed on the downside. A break should lead to lower levels, while a bounce off the support puts the memory of the downgrade a distant memory as the market focuses on other fundamentals.
Fitch on Mexico
June 10, 2009 by Danish FX · Leave a Comment
Fitch says Mexico will need a “plan B” to avoid downgrade if govt cannot pass a tax reform
Forex News Fitch Downgrades 5 Japanese banks
January 26, 2009 by Greg Michalowski · Leave a Comment
- Fitch downgrades five banks
- Reviews 56 Japanese regional banks
- Revises ratings on 17 banks to negative from stable.
The news should pressure the Yen as the currency has been a safe haven currency as a result of relative bank health.
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