Forex-Metal Daily Analysis -29/07/2011

S&P downgraded Greece rating for 2 levels.

Asian and European trading session:
Euro: Another downgrade of Greece rating caused serious pressure on the euro today. The rating agency S&P downgraded the rating of Greece to ‘CC’ from ‘CCC’ with negative outlook yesterday. The rating is now on the same level with a rating from Moody’s. (It should be mentioned that the Fitch agency had downgraded Greece’s rating from B + to CCC).

The EUR/USD pair traded in the $1.4331-$1.4382 range. Its maximums were set during the European session at the $1.4400 mark.

New Zeeland Dollar: The New Zealand dollar continued its trading at the previously reached maximum levels against the US dollar after the RBNZ has left official interest rates unchanged at the 2.50% yesterday.
British Pound: The GBP/USD traded $1.6310-$1.6340 range and was under pressure after the weak Retail sales report of the Confederation of British Industry (-5% in July). The sterling rate fell to $1.6290, and then recovered to $1.6322 mark.

Japanese Yen: The yen rose against major currencies on concerns about the situation in the U.S. and Europe. The USD/JPY pair decreased to the area of Y77.70.

Swiss Frank: Since the demand for the save-heaven currencies was strong on Thursday, the Swiss frank continued to trade around its maximums.
Australian Dollar: Australian dollar, which set record highs against the U.S. dollar, was trading at its maximum levels.

American trading session:
US Dollar: Greenback was falling against the major currencies due to the events in the U.S. Congress, where Democratic and Republican parties continued to seek compromise on increasing the limit of public debt.
EUR/USD continues to trade near the resistance level at $1.4320.