Forex - UFXBank - Week in Review -17-July-2011


Uploaded by UFXBankVid on 17.07.2011

Transcript:
Hi, I’m Martin Smith and this is your UFX Bank Week in Review. Today, we will cover
some of the major financial events of the past week and discuss how they impact the
global currency markets. The Euro fell against the U.S. dollar after
Irish debt was reduced to junk by Moody’s Investors Service. Moody’s cut Ireland to
Ba1 from Baa3 on July 12, making it the third country in the euro-area, after Greece and
Portugal, to be rated below investment grade. Yields surged in Italy, pulling the euro zone’s
biggest debtor further into the region’s financial crisis. The shared currency steadily
fell each day and declined nearly 1% percent on the week. The EURUSD pair was last trading
at 1.4154. The Swiss franc and Japanese Yen were the
top performers against the US Dollar as investors sought a safe haven amid warnings from ratings
companies about the U.S. and Europe. This week, the USD/JPY pair declined heavily, down
-1.80 percent and closing at 79.11. The Canadian dollar had a mixed week against
its US counterpart, rising 1% to close at 0.9529. Earlier in the week, the CAD was viewed
as a safer investment among traders, due to economic uncertainty in the US and European
economies. The CAD enjoyed a late boost on Friday as well.
The British Pound fell against the U.S. Dollar on Friday after the release of U.S. data regarding
Industrial Production. Despite some stable data from the services sector, growth is still
quite soft in Britain. The rampant debt crisis in Europe continues to weigh on the pair as
well. Overall, the GBP/USD pair had a mixed week, but was up 0.47% and last trading at
1.6131. In commodities this week, August Crude Orders
managed a second consecutive week in the green, despite U.S. and European debt concerns. Crude
oil was up by a little over 1% this week and closed at $97.24 a barrel.
Gold futures rose, exceeding the longest improvement since November 2009, on growing concern that
debt woes in the U.S. will increase, boosting the attractiveness of the yellow metal. Gold
almost pulled off a solid week of consecutive gains finishing the week up 3.2 percent and
was last trading at $1,593 per ounce. Economists said Gold may even reach $1,600.
Recent economic concerns have spurred investor appetite for Gold as a hedge against inflation
and as a refuge against economic uncertainty, both in the US economies and in Europe.
Probably the biggest story of the week, and the one with the most economic impact, was
the S&P’s 50% percent likelihood that the U.S. will lose its top credit rating, even
if Congress agrees on raising the debt ceiling. A failure by the U.S. to meet its financial
obligations may prompt S&P to cut the nation’s rating to “SD”, which stands for Selective
Default. The U.S. is set to lose the AAA credit rating it has held since 1941. Borrowing will
continue to increase unless a $4 trillion economic consolidation plan is agreed on,
S&P said.
Well, that is all the time we have for today. I hope you’ve enjoyed this week’s review
and I hope you will join us next week. Until next time, be sure to visit us at UFXBank.com
for simple, safe, secure trading. For UFX Bank, I’m Martin Smith. Good luck and happy
trading.