Daily Forex Analysis by Finexo.com 11/11/2009

The rating agency, Fitch, declared on Tuesday that Britain is most at risk among the big economies to lose its AAA credit rating. The concern that Fitch outlined was that it was evident that Britain’s ability to sustain a large public debt as well as soaring annual fiscal deficits was not as strong as other major countries such as the US. The International Monetary Fund believes that Britain will likely run up their deficit to 11.6% of their Gross Domestic Product in 2009. This is the second largest deficit among all of the G20 countries; the US is first with 12.5% of GDP. The news helped the Sterling fall broadly.
At 10:15PM GMT, the British Pound Sterling was trading down .21% to the US Dollar to 1.6728, down .09% to the Euro to .8945, down .12% to the Swiss Franc to 1.6873, down .4% against the Japanese Yen to 150.15 and down .5% versus the Canadian Dollar to 1.7586.
The US Dollar rose from the lows set on Monday after investors sought to lock in profits from the steep fall. Analysts speculated that the mood on the street was that the Dollar fell too far, too fast and that was the cause for the pull back on Tuesday. The trend on the USD is still lower, although and investors can be sure to see more down days in the future. The ICE Dollar index rose to just over 75 after falling to a fifteen month low on Monday.
At 10:20PM GMT, the US Dollar was trading up .2% to the Euro to 1.4968, up .1% against the Australian Dollar to .9286, up .2% to the New Zealand Dollar to .7415, up .14% versus the Swiss Franc to 1.0087 and down .2% against the Japanese Yen to 89.75.


A new four-day high was rejected today and interest rates have ticked sharply lower, suggesting there could be more downside pressure for the shortest term on JPY crosses.


Written by Finexo.com