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9 Jul 2013
Session Recap: Euro & Pound declines on bad news
FXstreet.com (San Francisco) - Both, the Euro and the Pound traded lower on Tuesday as the bad news in Europe spread the market. Firstly, the UK industrial production came below expectations sending the GBP/USD to break down the 2012 low at 1.4830 and reaching a fresh minimum since August 2010 at 1.4812.
Secondly, the IMF revised down its global forecast; all big economies would rise lower than previously expected as the IMF put the reductions down as “appreciably weaker domestic demand and slower growth in several key emerging market economies, as well as by a more protracted recession in the euro area.”
Later on the day, Standard & Poor's decided to downgrade Italy, cutting the rating to BBB from BBB+ with negative outlook. Then, the EUR/USD tested 2013 lows around 1.2755.
As for the other crosses, the Greenback traded higher joining both fundamental conditions and hopes on Q2 earnings season. The US Dollar Index inched higher and traded to highest since early 2011 just shy of 85.00. The USD/JPY consolidated position above the 101.00 area. However, the USD/CAD retraced to the 1.0500 area and the AUD/USD continues with its recovery and tested the 0.9200 price.
Main headlines in the American session:
IMF slashes global growth forecasts
UK: NIESR GDP Estimate unchanged at 0.6% in June
Asmussen: Bailouts are out; bail-ins are in
S&P downgrades Italy to BBB, outlook negative
Wall Street rises for 4th day on earnings season hopes
Secondly, the IMF revised down its global forecast; all big economies would rise lower than previously expected as the IMF put the reductions down as “appreciably weaker domestic demand and slower growth in several key emerging market economies, as well as by a more protracted recession in the euro area.”
Later on the day, Standard & Poor's decided to downgrade Italy, cutting the rating to BBB from BBB+ with negative outlook. Then, the EUR/USD tested 2013 lows around 1.2755.
As for the other crosses, the Greenback traded higher joining both fundamental conditions and hopes on Q2 earnings season. The US Dollar Index inched higher and traded to highest since early 2011 just shy of 85.00. The USD/JPY consolidated position above the 101.00 area. However, the USD/CAD retraced to the 1.0500 area and the AUD/USD continues with its recovery and tested the 0.9200 price.
Main headlines in the American session:
IMF slashes global growth forecasts
UK: NIESR GDP Estimate unchanged at 0.6% in June
Asmussen: Bailouts are out; bail-ins are in
S&P downgrades Italy to BBB, outlook negative
Wall Street rises for 4th day on earnings season hopes