Greece Cut to the Lowest by Moody’s | IFCM
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Greece Cut to the Lowest by Moody’s - 5.3.2012

US Dollar The dollar remains close to its two-week high according to the currency’s index, which climbed on Friday to 79.45. In Asian trading hours the US unit gained some ground as China’s government indicated the lowest economic growth target since 2004. In the United States the Institute for Supply Management will release today its February's non-manufacturing index data. The indicator probably slid to 56.2 from 56.8 in January, still showing an expansion in the sector. Euro The euro is under pressure against both the US counterpart and the Japanese counterpart. One of the risks for the single currency today is retail sales data. According to preliminary estimations, the gauge of purchasing activity dropped for a third month. The volume of euro-area retail sales probably declined by 0.1% from December to January, decreasing the annualized rate to minus 1.5%. On Thursday the European Central Bank will announce its policy rate decision: the main refinancing rate may be kept at 1%. On Friday Moody’s Investors Service downgraded Greece to the lowest possible level. The agency cut the Greece’s bond ratings to C from Ca due to “the recently announced debt exchange proposals for Greece, which imply expected losses to investors in excess of 70%”. The euro dived on Friday from 1.3333 to 1.3186 against the greenback and remained mainly under 1.3200 in Asian trading hours, even touching 1.3172, the lowest level since February 17. Australian Dollar The Australian dollar weakened today against the US dollar and dropped below 20-day moving average curve, touching at the beginning of the European session one-week low at 1.0694. The currency extended Friday’s losses after its biggest trading partner - China - said it will aim for slower growth of 7.5% in 2012, the lowest target since 2004. The Reserve Bank of Australia will meet tomorrow to decide on interest rates. The main policy rate will be probably kept at 4.25%, one of the highest levels in the developed world. Canadian Dollar The loonie was under pressure in the morning as well, as the pair USD/CAD rose from 0.9884 to 0.9925. The greenback is accelerating gains against its northern counterpart after Canada’s GDP grew at a 1.8% annualized pace in December, less than economist estimated on average. The nation’s statistics department also reported a weaker foreign trade data as exports growth slowed to 1.1% in the fourth quarter from 3.8%, while imports increased by 0.5% after a 0.4% drop. On Thursday the Canada’s central bank may keep policy interest rate at 1%.
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