MORNING BRIEFING: Fall of the Pound Sterling after England could lose its AAA rating.

[RTFX-Trading]

MORNING BRIEFING: Fall of the Pound Sterling after England could lose its AAA rating.

What’s new:
England could lose its AAA rating as per Fitch.
France: Industrial production down by 1.50% in September.
Switzerland: Jordan of the SNB , says that the current monetary policy has its risks.
Germany: inflation +0.10% in October, -0.10% over a year.
USA: 9 out of 10 banks have their capital bailed out by the Fed.
Germany: strong rebound in industrial production in Q3.
Euro area: investors moral up in November.
GOLD: a new record over $ 1,100 an ounce.

Today:


Rates in Asia and Indices:
EURUSD: 1.5013 - 1.4951.
USDCHF: 1.0109 - 1.0069.
EURUSD: 1.6789 - 1.6602.
EURJPY: 135.00 - 134.32.
USDJPY: 90.04 - 89.68.
Dow Jones: 10226 +2.03%.
NASDAQ: 2,154 +1.97%.
S & P 500: 1,093 +2.22%.
Nikkei: 9'862 +0.55%.
Shanghai: 3'193 +0.57%.
Gold: $1,098.
Crude oil: $78.95.
 
Comments:
The Pound Sterling fell by nearly 1% against the Dollar, from 1.6755 to 1.6610 Dollar, after Fitch's warning that the UK is the country most at risk of losing its AAA rating among the major economies. We note a lot of stop loss sellers below 1.6600 in GBP/USD and other major buyers place stop loss above 0.9050 in EUR/GBP.

Regarding the Dollar, the market believes it should remain under pressure because of rate differentials and the fact that the leaders of the G20 have officially expressed concerns about the weakness of the greenback during their meeting this weekend. The greenback had even dropped to its lowest level since 15 months against a basket of currencies. Rising stock markets surged after the Fed announced that 9 of the 10 largest banks have raised enough funds to withstand rising unemployment and slowing growth, this is as well in favor of “Carry trades” and bearish for the greenback.

Good day.

Nicolas Longchamp
RTFX Ltd
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