Forex

The Italy's sovereign debt rating was downgraded to the level of BBB + with a negative outlook by the Fitch rating agency

Asian and European trading sessions:

Euro: The euro fell against the dollar amid decrease in the demand for the risky assets. These negative dynamics were caused by the news about the lowering of the sovereign rating of Italy by the Fitch rating agency. The sovereign debt rating was downgraded to the level of BBB + with a negative outlook, which increased political uncertainty. In addition, today’s releases informed that in the 4th quarter of 2012 the Italy's economy contracted by 0.9% quarterly, which was in line with expectations. The GDP annual rate was -2.8% against expectations of -2.7% from a revised -2.7 %. The negative sentiment of the market has also increased after the release of economic statistics from Germany and France. The Industrial production in France fell by 1.2 % versus +0.1% and the trade surplus of Germany narrowed by € 16.9 billion to € 15.7 billion. The EUR / USD pair fell to $ 1.2988 during the European.

U.S. Dollar: The dollar index went up closer to almost 83 level which is the highest level in seven months in anticipation of data on retail sales in the U.S. The data on retail sales of the last month which will be published by the Ministry of Commerce on March 13, accordinghly the average forecast of economists, is likely to show the growth by 0.5 %, after a 0.1 % gain in January.

Japanese Yen: The Yen traded lower after the release of negative statistics from Japan. The orders for industrial equipment in the country showed the strongest decline in eight months falling by 13% in January in monthly terms with the analysts’ prediction of the drop by only 1.7%. The USD / JPY pair traded in a narrow range of Y95.98 - Y96.23 during the Asian and European session.


American trading session:

U.S. Dollar: The dollar was under pressure after the release of the results of the auction on U.S. government bonds. As it became known, the 3-month and 6-month treasuries were sold today and their yield average has declined from 0.11 % to 0.095 % and from 0.12% to 0.115 %, respectively.

Canadian dollar: The Canadian dollar was up today against most of its major competitors. The Unemployment rate report submitted on Friday showed that the level came out better than expected, at the level 7.0% versus forecasted 7.1%, prompting speculation that the economic recovery is gaining momentum.

Gold: The price of gold futures traded in the narrow range of $ 1576-1582, as many traders continued to assess the strengths Friday's employment data in the U.S., which greatly influenced the dynamics of Friday's trading sessions. The April futures price of gold on COMEX closed at the 1581.10 dollars per ounce level.

Oil: The oil prices fell today on the negative macroeconomic statistics from China. The report submitted by the National Bureau of Statistics showed that the inflation rate in China has increased significantly in February, while still achieving a ten-month high. The April futures price of WTI fell to 91.13 dollars a barrel then, however, were able to recover on the NYMEX to the level 91.84.