once placing heavy pressure on the EUR/USD as Europe debt worries of being market digesting, experiences a wave after the collapse of the euro began to exhibit signs of rebound. But just when this rally is still in its infancy stage, relevant market Spain election political risks or concerns immediately killed in the cradle. At the same time, Fitch (FitchRatings) Greece debt rating a further reduction to "junk" to the euro rally road of the purchase of additional obstacles. Road to euro rebounded after the collapse of the real is bushy.
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Japan economic three times recession focused riyin interest rate resolution fed exit: also see 2012 RMB joined SDR is can foreseen of thing IMF Qian President Kahn was bail fed said inflation higher is temporarily phenomenon fed does not in year interest rates RMB away from bank market waiting for more "restrictions" Qiming jointly immortal see disk build boutique lecture Friday (May 20) New York period , EUR/USD in touch 1.4139 modest rebound after days of low level point, near the current basic 1.421 oscillation. Exchange rate during the European morning once up to a week and a half high of 1.4344 level.
Spain local Council election political risk reef clumpSpain the Government is scheduled to be held next Sunday (May 22) to hold local Council elections, the current ruling Spain workers Socialist Party and the opposition people's Party showdown. As of election day approaching, many market participants started revealing the anxiety: due to the centre-right people's Party of seats will increase significantly, may expose the hidden financial problems.
Ka-Shing Group (GainCapital Holdings Inc) analysts pointed out that local Council elections on Sunday will bring two risks. First, the ruling Socialist Party could face Waterloo, led the Government to collapse. Council confusion for bonds, rely on the stability and prosperity is not good news. Opposition people's Party in elections expected in excellent, if a sufficient number of votes, may be proposed for election, the requirements of the current Government to step down.
in addition, various reports hinted that after the local elections, conceal large amounts of debt before may disclose it. This is because, before the voting, local government delayed coupon payments and other accounting tricks window-dressing financial statements. At the end of last year after the election, Spain Catalonia in the northeast of the budget deficit has doubled, this can investors worried about the mass outbreak.
flowering Exchange (CitiFX) GregAnderson, senior foreign exchange analyst said that "our upcoming Spain election felt some anxiety. Fears that if the opposition wins, they would be likely to open the financial problems of Pandora. "
Fitch Greece rating to B+ looking for negativeinternational rating agency Fitch (FitchRatings) said in a statement released Friday, had Greece long-term foreign currency and local currency issuer default ratings from" BB+ "down to" B+ ", and the rating Outlook is negative. Fitch pointed out that Greece fundamental challenges faced by financial and structural reforms contributed to the ratings. Greece rating downgrades reflect the challenges it is facing, the country now faces the challenge to implement aggressive fiscal and structural reform.
Fitch added that if the EU did not fully meet the financial requirements and reliable/IMF plan, Greece rating may be further adjusted down to "CCC" level.
Greece Government immediately said, Fitch cut its rating of the country did not consider Greece to be initiated new measures in recent days, and these measures will reduce Greece's budget deficit and the debt burden. Greece Ministry of finance said in a statement, the current European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF) is still on Greece to assess economic adjustment projects. But there is a lot of unsubstantiated rumors on the market, Fitch downgrades the decision made by it is in this context.
FX168 financial group Exchange commentator Niu Guochun, "said Fitch downgraded Greece rating this incident undoubtedly is a bad message for EUR/USD, but looking at the exchange rate trend, at least temporarily, market reaction is not obvious for the message. This may bear out my previous guess, the market for Greece debt problem attitude by the " concern " tends to be " the numb ". In other words, the market is slowly digesting Greece issues negative effects. "
Western Pacific (601,099, unit) banks (Westpac) RichardFranulovich, senior foreign exchange analyst said that" currently, a lot of bad messages is followed in the euro. Euro buying interest despite several trading days before investors have warmed up, but the road to rebound in the short term the euro still struggled. "
03:02 ', EUR/USD 1.4207/11.
