Thursday, July 14, 2011

Greece was further downgraded by Fitch to CCC rating

Coming Up Today (All times GMT)

  • 12:30pm USD Core Retail sales
  • 12:30pm USD PPI
  • 12:30pm USD Retail Sales
  • 12:30pm USD Unemployment Claims
  • 2:00pm USD Fed Chairman Bernanke Testifies

The US Dollar has been on the run in Asia session on Thursday after a warning from Moddy's and placing USA's Aaa rating under review. Also the US dollar lost ground as well on Federal Reserve Chairman Ben Bernanke’s suggestion to provide more stimulus if the economy weakens further. 

The greenback was slashed twice yesterday, the potential for another round of asset purchases by the Fed known as quantitative easing and the Moody’s warning, pressured the currency which fell across the board against a basket of currencies and send the Gold to record highs. Versus the Swiss franc, the greenback fell down to 0.8073 to a record low of all times, the US dollar against the Japanese yen dropped to 78.44 and found support there.  

Moreover the Australian dollar versus the US dollar rose to its previous record highs at the 1.0787 and for a while it was traded at new highs.

USDCHF Support/Resistance 0.8073/0.8128
USDJPY Support/Resistance 78.44/79.58

 EUR/USD

The latest events for US economy has helped the Euro to reverse the bearish sentiment that prevailed in the market the previous trading sessions and also has turned the focus of the financial markets away from the sovereign debt crisis of the euro zone. 

However, yesterday Greece was further downgraded by Fitch to CCC rating, citing the absence of a new and fully funded financing program. Fitch also indicated that Italy would be able to keep its current credit rating if it stuck to fiscal targets. 

The common currency has reversed the down trend and rose up to 1.4281 resistance level, holding well above the 200-day moving average. Versus the Swiss franc, the euro fell down 1.1489 while the 1.1719 is expected to hold any bounce up.

EURUSD Support/Resistance 1.4204/1.4281
EURCHF Support/Resistance 1.1489/1.1719

Published: 14 July, 2011
written by: Adamos Anastasiou , Analyst Markets.com