FX & CFD trading involves significant risk
The dollar dropped after U.S. lost its last stable outlook from the three biggest credit-ranking companies after Fitch Ratings lowered the nation to negative following a congressional committee’s failure to agree on deficit cuts.
Fitch’s outlook on the U.S., which it still assigns its top AAA grade, reflects “declining confidence that timely fiscal measures necessary to place U.S. public finances on a sustainable path will be forthcoming,” making the probability of a downgrade greater than 50 percent over two years, the company said yesterday in a statement. Standard & Poor’s and Moody’s Investors Service said Nov. 21 that the so-called supercommittee’s inability to reach an agreement didn’t merit downgrades because the inaction will trigger $1.2 trillion in automatic spending cuts.
The Australian and New Zealand dollars rose toward the highest in a week before euro-area officials meet in Brussels amid optimism leaders are working to fast-track a solution to the region’s debt crisis.
The so-called Aussie gained for a fourth day against the yen as Asian stocks extended a global rally, boosting demand for higher-yielding assets. The currency earlier weakened after the government said it will cut spending by A$6.8 billion ($6.7 billion) to deliver a budget surplus, adding pressure on the Reserve Bank of Australia to lower interest rates. Fitch Ratings upgraded Australia’s long-term foreign- currency issuer default rating to AAA from AA+ before the release of the budget review. The nation now holds the top grade at all three main credit assessors for the first time.
EUR/USD: on Asian session the pair gain.
GBP/USD: on Asian session the pair gain.
USD/JPY: on Asian session the pair showed new week’s high, but receded later.
All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.