Forex

The “Moody's downgraded the EU’s rating outlook from "stable " to "negative"

Asian and European trading sessions:

Euro: The EUR / USD pair reached the high of two months, the $ 1.2627 level during the beginning of the European session. The market was supported by the comments of ECB President Mr.Mario Draghi at the end of trading sessions on Monday where he stated to lawmakers that the ECB will start to buy bonds with maturities of up to three years. The Euro grew against almost all its competitors on expectations that the plans of the head of the European Central Bank Mr.Mario Draghi of buying out the government bonds of troubled countries for restoring confidence for the single currency would work.

U.S. Dollar: Amid positive market’s sentiment at the beginning of the day, the dollar index which used to track the value of the dollar against six major currencies was down by 0.15% to 81.02.

British Pound: The GBP / USD pair rose slightly above $ 1.5902 for the same time as Euro currency. However, it could not hold the mentioned above level and fell on publication of the result of the report for Purchasing Manager Index Construction which recorded a decline below 50, indicating contraction of business activity in Britain. The pair GBP / USD fell to the level of $1.5866.

Japanese Yen: The USD / JPY pair rose to Y78.42 during the Asian session and continued to grow to Y78.46 during the next following session.

Australian dollar: The Australian dollar was able to stop its downtrend after the Reserve Bank at its meeting refrained again from cutting interest rates. The Reserve Bank of Australia left its key interest rate unchanged at 3.5% which considered the highest rate among the developed countries of the world.

American trading session:

Euro: The currency pulled back from reached today highs due to the information that the rating outlook of the EU was changed from "stable " to "negative "by the international rating agency “Moody's Investors Service”. The long-term credit rating was confirmed at AAA mark. Previously, when the information was published it was ignored by the market.

Swiss franc: After it became known that the level of the Swiss GDP for the second quarter decreased by 0.1 % compared with forecasted 0.2%, the Swiss franc weakened against the dollar.

Gold: The September futures price of gold approached closely to the highest mark in six months to the $1698.10 per troy ounce on the COMEX today. The prices hold highs due to the willingness of Fed of U.S. to inject liquidity to markets.

Silver: The Silver prices closed at the highest mark in six months $32.35 per troy ounce on the COMEX today due to the same as for Gold reason, the willingness of Fed of U.S. to inject liquidity to support economy.

Oil: The October WTI futures on the NYMEX fell to $ 94.97 per barrel on the background of weak data on industrial production in the U.S. and the euro zone, reinforcing concerns that the economic slowdown would reduce demand for oil.