Forex: Monday's review
The euro fell for a third day versus the dollar in the longest losing streak since February as Standard & Poor’s reduction in Greece’s credit rating renewed concern the region’s debt crisis is worsening.
Greece’s credit rating was cut to B from BB- by S&P, which said further reductions are possible, with private investors at risk if maturities are extended on the nation’s emergency-aid package. Another rating cut would make Greece the lowest-rated country in Europe as today’s move left it even with Belarus after the fourth reduction by S&P since April 2010.
The 17-nation currency rose earlier as a report showed exports in Germany, Europe’s largest economy, jumped in March, bolstering the case for higher interest rates in the euro region.
The Australian dollar rose for a second day before data tomorrow forecast to show China’s imports increased in April.
Losses in the U.S. dollar were tempered before U.S. reports this week that may show fewer initial jobless claims and increased retail sales, providing evidence the recovery of the world’s largest economy is maintaining momentum.
At 1230GMT US Import/Export Price Index is expected to a 1.8% m/m gain for the Import Price Index.
EUR/USD: the pair shown low in the field of $1,4250, then become stronger above a mark $1,4300.
GBP/USD: the pair shown low in the field of $1,6270, then returned to around $1,6400.
USD/JPY: on results of yesterday's session the pair decreased in around Y80.20.
At 1400GMT US Wholesale Inventories data is due.