Last night was credit outlook downgrade night! S&P lowered Italy's outlook and Fitch downgraded Belgium outlook to negative. On top of that the Greek finance minister Papaconstantinou implied that if Greece doesn't receive the next quarterly tranche of cash it will be forced to default.
Across the channel, 14 out of 18 UK banks are on review for downgrade by Moody.
With all this negative news coming out of Europe and the UK, and asian stock markets facing a gloomy start to the week, we did see the Aussie dragged lower as well.
JPY crosses took a battering too, as lower equities and risk aversion pulled in a demand for JPY against higher yield currencies.
This morning we did see some consolidation in the Euro and a bit of a rally up just now after the Germany IFO came out better at 114.2 vs the consensus of 113.7. I've still got my short EUR/USD order in place at 1.4140, and my short GBP/USD order at 1.6200. UK public sector borrowing came out worse at 7.713bn vs 5.35bn. Looks like we may just see another bearish cable and euro today.
for tonight we still have the U.S new home sales come in at 2pm GMT.
I case you're wondering why i keep saying tonight, it's because I live in Singapore, so the data timings for me always end up being in the evening and night for me.
Across the channel, 14 out of 18 UK banks are on review for downgrade by Moody.
With all this negative news coming out of Europe and the UK, and asian stock markets facing a gloomy start to the week, we did see the Aussie dragged lower as well.
JPY crosses took a battering too, as lower equities and risk aversion pulled in a demand for JPY against higher yield currencies.
This morning we did see some consolidation in the Euro and a bit of a rally up just now after the Germany IFO came out better at 114.2 vs the consensus of 113.7. I've still got my short EUR/USD order in place at 1.4140, and my short GBP/USD order at 1.6200. UK public sector borrowing came out worse at 7.713bn vs 5.35bn. Looks like we may just see another bearish cable and euro today.
for tonight we still have the U.S new home sales come in at 2pm GMT.
I case you're wondering why i keep saying tonight, it's because I live in Singapore, so the data timings for me always end up being in the evening and night for me.
Happy Trading!
FxTaurian
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