The rating agency Moody’s downgraded the credit ratings’ of six European countries, including Italy, Spain and Portugal.
Asian and European trading sessions:
Euro: The euro dropped against the dollar in anticipation of meeting of euro zone’s finance ministers, which will take place on Wednesday. The result of this meeting will demonstrate whether Greece can get a new package of international assistance in order to avoid uncontrolled default. The EUR / USD pair showed its session low at $ 1.3127 level, but later pulled back to the daily highs of $1.3216. The main reason for this pull back were positive results of auctions of government bonds of Italy, which confirmed that Italy attracted 6 billion euro against a target 3.75-6.0 billion euro. Also, the positive statistics from German’s ZEW institute, which recorded a reduction of borrowing costs, supported the Euro currency’s positive dynamics.
US Dollar: The demand for safe assets like U.S. dollar increased after rating agency Moody’s downgraded the credit ratings of European countries, including Italy, Portugal and Spain. Greenback rose against all major currencies.
British Pound: The GBP / USD couple fell to $ 1.5685 level during the Asian session. The pound was under pressure on the background of a reduction of the forecast for the UK’s credit rating by international rating agency, Moody. The forecast was lowered from “stable” to ”negative”.
Japanese Yen: On the backdrop of the decision of the Bank of Japan to increase asset purchase program by 10 trillion yen to 65 trillion yen the yen fell against almost all major currencies. The USD / JPY pair soared to the highs of Y78.15 by the end of European session with certain potential to get higher on the following session.
American trading session:
Euro: The currency went back down at the American trading session. At that time, the pressure was provided by the report of Greece GDP, which is in the 4th quarter decreased by 7% against decreasing by 5.0 % in 3rd quarter.
Gold: The February’s gold futures were traded today in the range of 1711.2 – 1727.9 per ounce on the background of instability in situation with Greece.
Oil: The oil WTI March futures price rose to 100.95 dollars per barrel. Oil traded at highs during the session supported by the positive reports of growing of sales in U.S. retail stores, which signal the possible US economic growth and increase in demand of fuel.
Technical analysis for 15/02
EURUSD
The pair has declined to support 1.31674 and shows signals of breaking this level. If the pair declines below this level the pair will decline to 1.30277.
Resistance: 1.33143, 1.34882 1.35984
Support: 1.31674, 1.30277, 1.28630
GBPUSD
The pair has reached 1.56722 and rolling back to 1.57666.
Resistance: 1.58543, 1.60322, 1.62050
Support: 1.56722, 1.54842, 1.53482
USDCHF
The pair is trading between 0.92026 and 0.91079.
Resistance: 0.92026, 0.93069, 0.93949
Support: 0.91079, 0.89635, 0.88418
USDJPY
The pair has reached 78.345 and aiming to 79.070.
Resistance: 79.070, 79.707, 80.438
Support: 78.345, 77.539, 76.463
AUDUSD
The pair is aiming to 1.07739.
Resistance: 1.07739, 1.08413, 1.09112
Support: 1.07005, 1.06164, 1.05332