Market Overview

ForexLive Americas Wrap: UK Gets a Moody Shoe-ing


Canadian Dec retail sales slump to -2.1% from -0.5% exp
Canadian CPI slips also to 1.0% from exp 1.1%
Fed's Bullard: Still have too big to fail problem, inflation lower than target, more room for maneuver, global uncertainty way down from highs, policy to remain easy.
ECB Nowotny: Repayment of LTRO is a sign of normalisation
German EU parliament president Martin Schulz sticks the knife into Berlusconi
Fed's Powell and Rosengren speak at US monetary policy forum in New York
US economic growth measured lower
Greece goes digging for gold
Fed buys $1.45bn (from $5.24bn offered) in long dated treasuries
Germans turn hostilities toward France
Italy goes to the polls this weekend
Obama: Overall impact of sequester cuts will be to slow down economy
Obama and Abe: Abe agrees with Obama to strengthen Japan-US alliance, US and China to benefit, no intention to escalate tensions with China. More here also
Germans show they they're not all bad
Stocks close strongly into the weekend
UK loses triple A status from Moodys

A nice quiet meander into the US close was shattered by Moodys. They cut the UK's   triple A rating down one notch to AA1. Sterling took the 'below the belt' knock and closes on the canvas down at 1.5162. While some of the downgrade may have still been priced in the timing will leave a lot of questions to be answered on market open Sunday night.

EUR/USD started the session up towards 1.3200 after dropping from European session highs at 1.3248. A trip down to break a 1.3150 barrier didn't follow through and a gradual climb back ensued. Italy elections over the weekend kept the range tight.

USD/JPY had a pretty uneventful day. Again, we await events over the weekend as nominations are presented for the BOJ head. A feeble attempt was made at the 93.50 level on comments from Obama & Abe crooning over getting along. A preview of the BOJ decision can be found here.

USD/CAD took a 60 pip rocket up to 1.0250 after atrocious retail sales figures.  The CPI still wasn't playing ball with the BOC target and thus rate hikes seem even further away. The pair closes at 1.0213

AUD/USD. We're at 1.0300.  I give up :-D.

Just for good orders sake, Canadian budget balance came in at -0.57bn. Only 6 hours late but I got it to you in the end.

Thank you once again for having me and for all your reader contributions. Stay tuned to ForexLive over the weekend as we bring you the press news that matter.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: News Forex Global Economics Markets


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