France Downgraded But EUR Is Strong

France Downgraded But EUR Is Strong

The euro (EUR) is advancing against most of its major counterparts, even as Moody's announced their decision to cut France's sovereign debt rating. The rating agency lowered the nation's rating by a single notch from AAA to AA1. An interesting detail is that when, back in January, S&P had downgraded France, the bond yield's did not react at all. The Australian dollar (AUD) is weakening across the board as the minutes from the latest meeting of the Reserve Bank of Australia (RBA) were revealed, showing that the policy board continue to favour easing.

The euro (EUR) recorded a 10-week low versus the US dollar (USD) at 1.2690 on Friday but has since managed to recover, the level to watch for now and signal on higher highs is 1.2820.

OIL advanced by 2 US dollars a barrel over the past week, on the back of rising tensions in Gaza. The key level to watch is 88.00 and the precious commodity looks upbeat early in the EU session.

Gold (XAU) dropped to 1700 lows against the US dollar (USD) on Thursday and Friday last week; however it has produced a sturdy rise and now trades above 1730.

US Tech (NDQ) jumped to 2583.88 from 2536.00 yesterday, following a seemingly uninterrupted fall since the index peaked in late September.