EURUSD rose on Friday and closed at 1.3670. The ratings agency Standard and Poor’s downgraded the credit rating of the Eurozone from AAA to AA+ with a stable outlook. On the other hand Fitch Ratings affirmed France’s AA+ rating. The International Monetary Fund raised its outlook for the US Economy and forecasted that the economy would expand at a faster pace next year, because of the positive economic data and the sings of compromise in the US Congress. On the economic side an official report indicated that the Gross Domestic Product in the United States grew at 4.1 percent on an annual basis in the 3rd quarter of 2013. The President of the United States Federal Reserve in Boston Eric Rosengren stated on Friday that he does not agree with the cut of the asset purchase program that FED announced last week. According to Rosengren the unemployment rate in the country is still too high and the inflation is too low. Support for the EURUSD is seen at 1.3625 and resistance is seen at 1.3730. The HotForex Traders Board shows that 65 percent of the traders are short on the EURUSD.
EURUSD remained stable after S&P downgraded the AAA credit rating of the Eurozone
Economic expectations are helping the UK pound today, especially against the euro. The pound is seeing success as Forex traders and analysts look to 2014 for continued improvement in the UK economy. Many expect good news for the housing sector, and that is expected to form the cornerstone of economic recovery.
Greenback is heading lower today against most of its major counterparts. The dollar index might be up on the year, but today it’s pulling back on disappointing data and better news in other regions.
As the year draws to a close, the euro continues to gain ground against its major counterparts. Much of the help for the euro comes from comments that another rate cut isn’t likely to be needed to help keep the economy in recovery mode. However, there is also help for the euro from the fact that banks are repatriating funds.
The Japanese yen continued to show great weakness during the past year even as some of news should have been supportive for the currency. It looks like policy makers have made the currency rather unattractive for investors, which actually makes it easier for the central bank to achieve its inflation target.