Monday morning forex rates update - JPY and EUR higher
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I posted the early rate indications here:
- Monday open levels, indicative FX prices, 19 May 2025
It was a busy weekend for news:
- The weekend news hasn't been great for market confidence
- UK PM Starmer expected to announce Brexit "reset" deal on Monday. (Is Brexin the word?)
- Australian PM Albanese says he's "up for a deal" with Europe on free trade
- ECB's Lagarde:EUR/USD up justified by the uncertainty & loss of confidence in US policies
- European Central Bank Board Member Schnabel cautious on a June ECB rate cut
- ECB’s Kazaks: Rate cuts may be nearing end, but outlook still uncertain
- Friday bombshell: Moody's downgrades US credit rating
And, posts since then:
- Romanian centrist Presidential candidate ahead with 54.3% after 97% of votes counted
- Weekend: Bessent threatens tariff rates to return to ‘reciprocal’ levels if no trade deal
- Former President Joe Biden was diagnosed with an "aggressive form" of prostate cancer
The victory for the centrist Nicușor Dan in the Romania's presidential election, defeating right-wing George Simion is being read as a positive for Europe. Dan is pro-EU and pro-NATO. EUR/USD is a little higher than its Friday close as I update.
Yen is higher also, seemingly attracting a safe haven bid after another downgrade for the US lat on Friday. USD/JPY is circa 145.32 as I update.
Moody's downgraded its US rating from 'AAA' to 'Aa1'. Moody's had held a perfect credit rating for the US since 1917.
- Moody's noted that successive US administrations had failed to reverse ballooning deficits and interest costs.
- Moody's was late to this game, Fitch Ratings downgraded the US in 2023 and S&P Global Ratings did so in