• Forex: Thursday’s review

Market news

14 December 2012

Forex: Thursday’s review

 


The yen fell to the weakest level in almost nine months versus the dollar amid speculation the party of Japanese opposition leader Shinzo Abe, an advocate of unlimited monetary easing, will win weekend elections. The yen slid against most of its major peers amid speculation the Bank of Japan’s Tankan survey will show manufacturers’ pessimism grew.

The pound slipped after S&P lowered the outlook on Britain’s AAA ratings, citing weak economic growth and a worsening debt profile. The outlook, revised from stable, reflects the view that S&P has a one-in-three chance of lowering the ratings in the next two years, according to a statement from the ratings company.

The euro rose after news that European Union finance ministers closer to a bank union to reach an agreement on a common banking supervisors. The European Central Bank will oversee the largest creditors of the region.

Also support the single currency was a message about that. that the Eurogroup approved the allocation of aid to Greece. In December, Greece will receive 34.3 billion euros, and in the 1st quarter of 2013 - the new installment.

The euro continues to trade at a higher against the dollar, despite the uncertainty of the situation in the U.S., which reminded Boehner last comments on the fiscal cliff.

The Swiss franc strengthened against the euro after the Swiss National Bank left unchanged the target range for the three-month interest rate of LIBOR 0,0% -0,25%. The bank reiterated that it will intervene in the currency markets to prevent the growth of the Swiss franc against the euro and the weakening of the euro / franc below 1.20.


 

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