US Morning Notes – USD higher, Fitch downgrades Portugal’s credit rating
Wednesday, March 24th, 2010FX Highlights
- The USD is trading at its highest level since June of 2009 versus the EUR in reaction to report that Fitch downgraded Portugal’s credit rating to AA- from AA with a negative outlook and the EU may seek IMF help to handle the Greek bailout, equity markets traded lower in reaction to the news of the downgrade, EUR/CHF trades at a record low, commodity currencies traded lower pressured by weaker equities and declining commodity prices, JPY trades lower in reaction to the announcement of a record $1trln budget for next fiscal year, Japan’s rising budget deficit increases risk of the downgrade of Japan’s credit rating
- Focus turns to today’s release of US durable goods and new home sales
- Japan’s February trade surplus widens to Â¥651bln, exports rose by 45.3% and imports rose by 29.5%,JPY lower
- EU March flash services PMI rose to 53.7 from 51.8 last month, flash manufacturing PMI improved to 56.3 versus 54.2 last month, German IFO March business climate improved to 98.1 from 95.2 last month, improving EU economic data overshadowed by worries about EU sovereign debt risk, EUR lower
- GBP trades lower ahead of today’s UK 2011 budget announcement
- A study released Tuesday says China’s unfair trade and currency polices cost the US 2.4mln jobs between 2001 and 2008, two US Senators called for quick action by Congress to vote on whether the US will label China a currency manipulator
- Fed’s Yellen says inflation remains subdued, Q1 growth on track for growth of 2.5% to 3% and unemployment will edge down to 9.25% by year end but will remain painfully high in the coming years
- US equity markets set to open lower, European equities mixed, Nikkei closed 40 points higher
Upcoming Events
- US- Wednesday, February durable goods will be released expected at 0.7% compared to 2.6% last month along with February new home sales expected at 320k compared to 309k last month
- CAN-Tuesday, no major Canadian economic data is due for release today
Written by Easy-Forex
