FX Commentary – 10Nov

Posted: 10 Nov 2009, 7:42pm (FOREX)


Sterling was under pressure following a comment by Fitch’s head of global sovereign ratings, David Riley, said that the UK ran the highest risk of all the major economies of losing its AAA status.

GBP/USD range 1.6600-1.6789. Trading relatively quiet until Fitch news broke. Went from 1.6745/50 to 1.6650 very quickly. EUR/GBP jumped to 0.9010 from 0.8940.

USD/JPY range 89.68-90.05. Resistance above 90.00 but with Fitch news GBP/JPY went from 150.70 to 149.10 which weighed on USD/JPY.

AUD/USD range 0.9255-0.9324 resistance at 0.9330/50 still holding. Support at 0.9180/50 area at the moment.

The US Dollar Index, which measures the USD against a basket of currencies, fell to its lowest level in 15 months. The G20’s decision to continue the economic stimulus has furthered the move to use the Dollar as part of a carry trade against higher yielding currencies.

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