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European Debt Market

In: Business and Management

Submitted By terry809
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European debt crisis continue to bring influences to the global economy during the week. , During the week, “Standarad and Poor’s (S&P) downgraded Italy’s credit rating from a A+/A-1+ to A/A-1” beacuse of “Italy’s weakening economic growth prospects” and “a view that its governing coalition would limit the government’s ability to respond decisively.” Such a downgrade affects the Australian Forex falling “to a five-week low” and economists expected that currency market is “driven by further news on eurozone debt woes.” Moreover, the three top US banks, Bank of America, Wells Fargo and Citigroup was downgraded by Moody’s because of “the US givernment less willing than before to rescue them if they become unstable.” Such news bring influences to Australia Forex and causing it “trading near its 10-month low as traders worry about a possible recession in the US and Europe.” I was thinking to change my trading position to sell rather than buy for Australia Forex as I found that the market expectations were mianly different from my positive expectations.. However, “Westpac New Zealand senior market strategist Imre Speizer said the mood on currency markets was slightly more positive on expectations world central bankers and finance officials were closer to a decision ona more comprehensive solution for Europe’s debt woes.” Such news gives me confidence that once there is a solution to the present situation to Eurozone the Forex market could rise. Rather than that, another news saying that a reserve Bank of Australia (RBA) officials says, “it is too early to tell whether the Australian economy will be hit by the bug that is making the US economy sicks.” Also, RBA deputy governer Ric Battellino told the Euromoney Australian and New Zealand Debt Capital Markets Forum “a topical question at present is whether the recent turmoil in global markets will eventually overwhelm the…...

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