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 confidenceUK 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 tradeECB’s Lagarde:EUR/USD up justified by the uncertainty & loss of confidence in US policiesEuropean Central Bank Board Member Schnabel cautious on a June ECB rate cutECB’s Kazaks: Rate cuts may be nearing end, but outlook still uncertainFriday bombshell: Moody’s downgrades US credit rating
And, posts since then:
Romanian centrist Presidential candidate ahead with 54.3% after 97% of votes countedWeekend: Bessent threatens tariff rates to return to ‘reciprocal’ levels if no trade dealFormer 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
This article was written by Eamonn Sheridan at www.forexlive.com.