Posts Tagged: credit rating

As the situation in the European Union continues to be tensed, the trading market has a powerful reaction as the risk aversion has triggered a new wave of changes on the market. The safe-havens seem to be favored and the currencies around the world gain based on different speculations related to the evolution of the sovereign debt crisis.

The Euro has managed to regain a little of yesterday’s losses today on the speculation that the policy makers are to increase the rescue fund. The Guardian announced that Germany and France agreed to increase the European Financial Stability Facility from the level of €440 billion ($607 billion) to the one €2 trillion. This change is supposed to take place before the G-20 summit which is to take place this weekend. The Stoxx Europe 600 Index grew by 0.8 percent.

Moody’s has announced the downgrade of another credit rating, that of Spain. This has generated a wave of Read more »

The European debt crisis aggravates from one day to another. As the Italian rating has been downgraded today, there are more and more concerns about the viability of the European Union. In order to try and find a solution to these problems, the finance ministers of the countries in the European Union met today to discuss the sovereign debt crisis issue, especially the situation in Greece, but the meeting ended with no noticeable results. All this indecisiveness of the European politicians had a very bad effect upon the European currency, which has recorded once more losses against its major counterparts. But this is not the only European currency which performed badly today, as the Swiss Franc also registered losses based on the speculation according to which the Swiss National Bank is going to impose new measures in order to prevent the overvaluation of the nation’s currency.

When it comes to the problems in the European Union, the most Read more »

The downgrade of the US credit rating has had consequences upon all the major currencies on the market, especially against the Australian Dollar which has registered huge losses since the 5th of August. The market functions now especially on sentiment; and the risk-aversion has caused a great deal of trouble to the Australian market, including both the Aussie and the stocks. After the losses registered at the beginning of the week, lots of Australian banks decided to do something as to help the national economy. Some local banks decided to decrease the interest rates, but this will only help the stock market. Moreover, the results will become visible on mid- and long-term bases, so investors are advised to hold on to their stocks if they can. Concerning the national currency, the trading market tried to make the Aussie rally against the other currencies on the market, but they did not actually succeed.

After the rebound on the Read more »

As the situation on the trading market down not promise to stabilize soon as concerns related to the fact that the European leaders are not going to be able to reach an agreement concerning the measures that need to be taken in order to solve the problems which have occurred due to the sovereign debt crisis, the safe currencies around the world have scored new gains against their major counterparts. The latest news points out to the fact that the European Union’s leaders are to meet at Brussels on the 21st of July in order to discuss some more about the financial situation of the Eurozone. The European Central Bank does not agree with the measure of restructuring the Greek debt and its officials agreed on lending the necessary amount of money to Greece despite the measurement taken by the rating agencies of downgrading Greece’s credit rating to the junk level. There are some market analysts who believe Read more »

The US Dollar fell against the Euro for the second day in a row due to the fact that the Moody’s Investor Service took the decision of putting the US credit rating under review for the first time since 1995. The US rating is now “Aaa”, but it is likely for the ones at Moody’s to downgraded due to the problems US is now confronted with, especially when it comes to statutory debt limit which the Congressmen may decide not to raise “on a timely basis” as to pay the interest, which would lead to a measure of downgrading the US Treasury debt obligations to the default level. This is due to the fact that the US President, Barack Obama, and the Congressmen have not yet been able to achieve an agreement concerning the raise of the $14.3 trillion federal debt limit and concerning the reduction of the country’s deficit. Ben Bernanke, the Chairman of the Federal Reserve, Read more »