11 Jun 2013
Session Recap: USD lower following S&P upgrade; US yields higher
FXstreet.com (Barcelona) - The USD ended the NY session off fresh weekly lows around the 81.60 level in the spot index (DXY), falling from fresh weekly highs above the 82 mark, when credit agency Standard & Poor's announced it is upgrading US debt outlook from negative to stable due to reduction of deficit.
The initial reaction higher on the USD was not sustained above the 82 mark printing weekly highs at 82.07 and soon started to ease. EUR/USD have printed fresh weekly highs at 1.3270, and Cable at 1.5586. US 10 year bonds printed a fresh 14-month low following the S&P upgrade, but US 10 year yields did not, posting a fresh 8-day high at 2.231% according to Reuters, shy of May 29 highs at 2.235%. USD/JPY printed fresh weekly highs at 99.24 on the back of higher US yields.
In the political/economic front FED member Bullard gave a speech at Montreal noticing surprised on low US inflation, while ECB Draghi said the European central bank will not finance troubled countries deficits. German FinMin Schaeuble will endorse OMT at starting key court case in Germany tomorrow.
Main headlines in the American Session:
S&P raises US credit rating outlook to stable from negative
S&P: Dollar as reserve currency makes financing deficit easier
German constitutional court hearing on OMT starts tomorrow
Draghi says will not intervene in bond markets to ensure the solvency of a company
Italian PM Letta says EU must give strong signal on banking union
US credit outlook change could be catalyst for sequestration deal
Fitch: Banking union progress is important to underpin confidence in the eurozone
Greece can return to growth next year – Juncker
EUR/USD keeps pushing higher, around 1.3270
US markets mixed, dollar retreats
The initial reaction higher on the USD was not sustained above the 82 mark printing weekly highs at 82.07 and soon started to ease. EUR/USD have printed fresh weekly highs at 1.3270, and Cable at 1.5586. US 10 year bonds printed a fresh 14-month low following the S&P upgrade, but US 10 year yields did not, posting a fresh 8-day high at 2.231% according to Reuters, shy of May 29 highs at 2.235%. USD/JPY printed fresh weekly highs at 99.24 on the back of higher US yields.
In the political/economic front FED member Bullard gave a speech at Montreal noticing surprised on low US inflation, while ECB Draghi said the European central bank will not finance troubled countries deficits. German FinMin Schaeuble will endorse OMT at starting key court case in Germany tomorrow.
Main headlines in the American Session:
S&P raises US credit rating outlook to stable from negative
S&P: Dollar as reserve currency makes financing deficit easier
German constitutional court hearing on OMT starts tomorrow
Draghi says will not intervene in bond markets to ensure the solvency of a company
Italian PM Letta says EU must give strong signal on banking union
US credit outlook change could be catalyst for sequestration deal
Fitch: Banking union progress is important to underpin confidence in the eurozone
Greece can return to growth next year – Juncker
EUR/USD keeps pushing higher, around 1.3270
US markets mixed, dollar retreats