G10 FX – The Eurogroup meeting today will be the major focus for the start of the week. EURUSD traded within a 50 point range around the 1.1400 handle despite stronger EU GDP and weaker US data. I see 1.15 offering good resistance and the expected range for today’s morning session is 1.1380//1.1430.
In Asia Japan GDP out today and BoJ meeting today will be the main drivers for the yen this week. We see 117, which is the recent low post NFP, as the lower bound of the range for now, with resistance coming in around 119.20. The market is expecting an improvement in economic performance and a strong GDP number should cap topside USDJPY. Overall, USDJPY should trade sideways in the 117//120 zone until we get further direction. (DB)
In Asia Japan GDP out today and BoJ meeting today will be the main drivers for the yen this week. We see 117, which is the recent low post NFP, as the lower bound of the range for now, with resistance coming in around 119.20. The market is expecting an improvement in economic performance and a strong GDP number should cap topside USDJPY. Overall, USDJPY should trade sideways in the 117//120 zone until we get further direction. (DB)
Recap of sovereign rating actions taken Friday:
– Fitch downgraded Austria to ‘AA+’; Outlook Stable
– Fitch affirmed Ireland at ‘A-‘; Outlook Stable
– DBRS confirmed Germany at AAA, Stable Trend
– S&P affirmed Israel at ‘A’; Outlook Stable
– Moody’s upgraded Latvia to A3; stable outlook
– Moody’s did not update rating on Italy. A rating update from Moody’s isn’t guaranteed as its sovereign release calendar is merely indicative and doesn’t necessary have to publish a rating update.
– Fitch downgraded Austria to ‘AA+’; Outlook Stable
– Fitch affirmed Ireland at ‘A-‘; Outlook Stable
– DBRS confirmed Germany at AAA, Stable Trend
– S&P affirmed Israel at ‘A’; Outlook Stable
– Moody’s upgraded Latvia to A3; stable outlook
– Moody’s did not update rating on Italy. A rating update from Moody’s isn’t guaranteed as its sovereign release calendar is merely indicative and doesn’t necessary have to publish a rating update.