Euro Up and Dollar Slides As U.S. Credit Rating Is Safe For No

The Euro is up today with the EUR/USD pair sitting at 1.3516 right now, a change of 0.0026 as investors don’t have to worry about any credit rating downgrades on U.S. debt right now. The dollar was also weaker against the Canadian dollar (USD/CAD) and Swiss Franc (USD/CHF).

After the failure of the super committee on getting any sort of debt reduction plan in place, many investors began to wonder what that would mean for the U.S. credit rating. Well today, many agencies including Fitch Ratings, Moody’s and Standard and Poor’s left their rating unchanged.

Moody’s did warn on Monday however that French debt could lose its AAA rating because of the increase in borrowing costs and slow growth. Kathy Lien of GFT Forex said, “A downgrade of France would cause far more carnage on the market than a downgrade of Spain or Italy even though it would all be extremely bad on the market.”

In Spain, Standard & Poor’s said the country’s credit rating will remain unaffected by the results of their elections over the weekend. The opposition center-right Popular Party won an absolute majority.

The Indian rupee hit a 2-year low against the dollar yesterday when it fell to 52.21. The Reserve Bank of India has been raising interest rates since early last year. The rupee fell yesterday after the steep sell off that hit global markets and investors running back to the safety of the dollar. Forex trading will continue to be volatile on this holiday shortened week and as the euro zone debt crisis continues.

Euro Continues its Gains After Greece Passes Austerity Plan

The euro continues its gains today after the Greek Parliament approves new austerity plan. The approval of these new austerity measures allows Greece to receive more aid. As the vote was being passed, Greek police clashed with protesters in central Athens. The people of Greece disagree with these new austerity measures because of the major effects it has on them, such as even lower public sector wages. These new austerity measures does not mean Greece still won’t default, it just does not look as dire as it did yesterday. They still have a long road ahead of them.

The euro gained 0.36% against the dollar, 0.07% against the yen, and 0.77% against the franc. Over the past week, the euro has recovered over 1.5% erasing most of the month’s loss. The U.S. dollar has been under pressure after weak economic data this month. The DXY is down 0.44% today.

Overall, the euro continues to gain ground against the other major currencies after the Greek vote. Now that the Greece has passed these new austerity measures, it takes some pressure off all the markets and we should see less volatile trading in the near future.

If you are searching for volatility closer to home check out Penny Stock Classroom. A partner ite that covers everything otc and otcbb related, Penny Stock Classroom covers the latest news and moves in penny stocks.

Real Time Web Analytics