Eur/gbp Parity On October

Citing a failure of the Congressional super committee to address the US deficit Fitch moved to change its outlook on US government debt to negative from stable. Economic News USD - Fitch Warns on US Credit Rating Yesterday Fitch warned on the US credit rating. Citing a failure of the Congressional super committee to address the US deficit Fitch moved to change its outlook on US government debt to negative from stable. Technically this means there is a chance of a ratings downgrade within the next two years. This puts Fitch on the same level with Moody's and one level above S&P who downgraded the US credit rating in August, igniting a storm in the financial markets. The move by S&P to lower the AAA rating of the US fueled sharp declines in equity markets and a rush to safe haven ...

The Week Ahead Highlights * US jobs disappoint, but still in the right direction * Is Europe about to implode? * Queensland flooding slows down the Aussie * Encouraging jobs data and accelerating price gains supporting the Loonie * Key data and events to watch next week US jobs disappoint, but still in the right direction Dec. US job gains disappointed most observers, but that was mostly the result of heightened expectations following Wednesday's surge in the ADP report, a notoriously poor indicator of concurrent NFP changes. Still, that more jobs were created in Dec. represents another step forward for the US recovery, reinforcing the recent stream of better than expected US data. The decline in the US unemployment rate from 9.8% to 9.4% (exp. 9.7%) was also a step ...

FX Strategy Weekly Market Outlook => Pro-risk currencies unfazed by EU periphery troubles; focus on G20 => BoE QIR to test sterling resilience A quiet data and event calendar means the dust should settle somewhat over global asset markets over the coming week, allowing investors to catch their breath and consider what will influence financial markets over the closing weeks of 2010. Risk appetite received a shot in the arm from the $600bln Fed Treasury purchase programme and this largely managed to neutralise escalating fears over the euro zone periphery where bond and CDS spreads hit new record highs. Though long high yield and commodity currency positions already look stretched technically, attractive yield differentials and QE flows from US into non-US assets are likely to spur ...

FX Strategy Weekly Market Outlook => GBP: prel Q3 GDP to seal Nov MPC QE vote? => AUD vs CAD: correlation switches The preference of investors to buy USD/G10 on dips ahead of the G20 meeting following supportive comments by US Treas Sec Geithner indicates that the phase of USD weakness may at least be temporarily exhausted. Having said that, currencies remain in a state of flux and USD selling may well still be the preferred course of action if central bank discussions this weekend come to nothing and discord over external imbalances and exchange rate coordination remain subordinate to individual economic interests. However, with QE2 in the US now fully discounted and risk reversals showing demand for USD puts stalling, a widening in EU peripheral spreads and profit taking in risk ...

Commentary of the EUR/GBP parity: The parity is finding resistance on 0.88. The price fake a breakout of this level. All indicators are still bullish. The parity is moving into a bullish channel. We maintain to trade only long positions as far as 0.8775 (last lowest) is support. See the previous analysis of the EUR/GBP parity of October 13th, 2010

Commentary of the EUR/GBP parity: The parity found support on 0.87 to make its return above 0.8750 and then broke the resistance at 0.88 (new buy signal). All indicators are now bullish. The price continues to move into its bullish channel. We maintain to trade only long positions as far as 0.8775 is support. See the previous analysis of the EUR/GBP parity of October 12th, 2010

Commentary of the EUR/GBP parity: The parity is currently testing the support at 0.87. The price is still into its bearsih channel. Most of indicators are getting bearish. We stay neutral on the parity as far as the price is below 0.8750. A return above this level will give a buy signal. We will then advise to trade only long positions as far as 0.87 is support. See the previous analysis of the EUR/GBP parity of October 11th, 2010

Commentary of the EUR/GBP parity: The parity just tested again the resistance at 0.88. The price is still moving into its bullish channel. Indicators are now mixed. We maintain to trade only long positions as far as 0.8730 is support. The breakout of 0.88 will give a new buy signal. The next major resistance is at 0.90. See the previous analysis of the EUR/GBP parity of October 8th, 2010

Commentary of the EUR/GBP parity: The parity continues its bullish movement into its bullish channel. 0.8730 (highest of October 3rd) perfectly acted as support during the last correction. All indicators are currently bullish. We maintain to trade only long positions as far as 0.8730 is support. THe breakout of 0.88 will give a new buy signal. The next major resistance is at 0.90. See the previous analysis of the EUR/GBP parity of October 7th, 2010