Dollar near 5 month low following renewed concern that the US may lose its AAA rating.

[RTFX-Trading]

Dollar near 5 month low following renewed concern that the US may lose its AAA rating.

What’s new?
United States: Fed likely to keep rates low for some time.
United States: White house does not believe credit rating will be at risk.
United Kingdom: GDP for 1st quarter remains at -1.90%.
Asia: Nikkei gains limited after North Korea nuclear test.
United Kingdom: Bank holiday.
United States: Memorial Day holiday.

Today:
10h00 Euro zone: German IFO Business Climate index May, exp 85.0, previous 83.7

Overnight Rates & Indices:
EURUSD: 1.4037 – 1.3977.
USDCHF: 1.0869 – 1.0829.
GBPUSD: 1.5898 – 1.5833.
EURJPY: 133.43 – 132.07.
USDJPY: 95.20 – 94.42.
DowJones: 8’277 -0.18%.
NASDAQ: 1’692 -0.19%.
S&P 500: 887 -0.15%.
Nikkei: 9’337 1.21%.
Gold: $955

Comments:

With market holidays in both the UK and US today, I expect trading to be low. The dollar continued to fall during the American session on Friday following continuing concerns about the US’ credit rating. All technical and fundamental factors are still dollar bearish. From our RTFX Trend we can still see the US dollar bearish against all other majors.

The dollar is steady now, trading near its 5 month low after recovering slightly against the Euro on Monday morning following reports that North Korea had conducted nuclear test. This week investors will be looking at the US Treasury’s debt auctions totaling $101 billion, which should provide a look into investors’ appetite for dollars and dollar assets. The bankruptcy of General Motors is also expected to return to the lime light later on this week.

Good Day
Emman Xuereb
RTFX Ltd
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