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17 Oct 2013
Flash: EUR gains on Chinas rating for US – TD Securities
FXstreet.com (London) - Research teams at TD Securities explained the further tailwinds in EUR/USD.
Key Quotes:
“In Europe, we saw bond yields coming in by 0-4bp in the UK, Germany, France, Italy, Netherlands and Spain”.
“However, we have seen renewed USD weakness, following the news that China’s Dagong rating agency downgraded US credit rating from A– to A, feeding into fears that Fitch could follow”.
“…we saw USD drop by 0.6%, allowing EUR/USD to reach 1.3638, the highest level since October 3, near this year’s high from February”.
“USD remains 0.5-1.0% weaker against G10 FX”.
Key Quotes:
“In Europe, we saw bond yields coming in by 0-4bp in the UK, Germany, France, Italy, Netherlands and Spain”.
“However, we have seen renewed USD weakness, following the news that China’s Dagong rating agency downgraded US credit rating from A– to A, feeding into fears that Fitch could follow”.
“…we saw USD drop by 0.6%, allowing EUR/USD to reach 1.3638, the highest level since October 3, near this year’s high from February”.
“USD remains 0.5-1.0% weaker against G10 FX”.