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Forex pairs in this Article » GBP/USD (Barcelona) - Derek Halpenny, European Head of Global Markets Research at the Bank of Tokyo Mitsubishi UFJ notes that there are no major data releases or events from Europe today to give the EUR/USD rate direction.

Key Quotes

“We remain neutral on EUR/USD at these levels and we are close to our year-end forecast of 1.3600. The European Union today lost its AAA rating from S&P with the ratings agency citing “weaker cohesion” and greater difficulty agreeing budget deals. There is little significance in this and given the vast amount of the EU countries were already less than AAA, this downgrade simply confirms the reality.”

“Elsewhere today, we get the final estimate for UK real GDP and also the Q3 balance of payments report. The current account deficit is expected to widen from GBP 13bn to GBP 14bn.”

“Financing of this deficit has been mixed of late with the portfolio account in deficit totalling nearly GBP 140bn over the last 12mths. On the positive side, the FDI balance has taken on a greater role in financing with a surplus of GBP 78bn.”
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