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Moody's became the fuse for selling U.S. funds, and several Fed officials arrived this week

Post time: 2025-05-19 views

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Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Market Review]: Moody's became the fuse for selling US funds, and many Federal Reserve officials arrived this week." Hope it will be helpful to you! The original content is as follows:

Early this week, safe-haven funds flowed into the action that dominated the financial market. The European Statistics Office will release a revision of April inflation data later in the trading day. Several Fed policymakers will speak in the second half of the day.

Later Friday, Moody's announced a downgrade to "AAA" to "AA1," citing concerns over the growing $36 trillion debt. According to Reuters, Moody's said: "Neither successive U.S. administration nor Congress could agree on measures to reverse the upward trend of the year's huge fiscal deficits and interest costs. U.S. stock index futures remained under strong bearish pressure in early European session, falling 0.8% to 1.3% for the day for the last time. The U.S. dollar (USD) index fell back to 100.50 after a fourth straight week of gains.

On the positive side, a key congressional committee, the House panel, approved U.S. President Donald Trump's tax cut bill earlier Monday, paving the way for possible House passage later this week.

Simultaneously, a key congressional committee, the House panel, approved U.S. President Donald Trump's tax cut bill earlier Monday, paving the way for possible House passage in the week.

At the same time U.S. Treasury Secretary Scott Bessent told CNN News on Sunday that President Trump will raise tariffs to April 2 levels if partners are not sincerely negotiating. "New deals have been reached with 18 important trading partners," he added.

Basic Forex Market Quotes:

Euro/USD holds its position, trading slightly above 1.1200 in early trading on Monday.

GBP/USD gains traction and trades above 1.3300 on Monday. The pair closed slightly higher last week after rebounding from a weekly low of 1.3140 hit./p>

AUD/USD remains relatively calm, fluctuating in a narrow range slightly above 0.6400 in early European session. The Reserve Bank of Australia (RBA) will announce monetary policy decisions on Tuesday during the Asian session. The market expects the RBA to lower its policy interest rate from 4.1% to 3.85%.

The US dollar/JPY is still under bearish pressure, trading around 145.00, beginning the European session. BoJ Deputy Governor Shinichi Uchida reiterated earlier in the day that the central bank would continue to raise interest rates if the economy and price improvements meet their forecasts.

Bulle market fundamentals:

For commodities, gold prices rose again after falling nearly 4% last week, and are currently up 0.6% to $3,222.

Oil prices are under pressure as the market is concerned that OPEC and Iran may increase production. Brent crude fell 37 cents to $65.05 a barrel, while U.S. crude fell 31 cents to $62.18.

Analysis of major currency trends:

Euro: The intraday bias of the euro/dollar remains neutral at present. The 38.2% retracement level of 1.1039 from 1.0176 to 1.1572 is expected to receive strong support to complete the correction from 1.1572. On the plus side, above 1.1292 will bring a stronger rise, retesting 1.1572. However, a continued breakthrough of 1.1039 will weaken this view and aim at the next 61.8% retracement level of 1.0709.

Moodys became the fuse for selling U.S. funds, and several Fed officials arrived this week(图1)

GBP: The intraday bias of GBP/USD remains neutral and more range trading may occur. On the plus side, a decisive breakthrough of the 1.3433/42 key resistance zone will confirm a larger uptrend recovery. Nevertheless, below 1.3138 will restore the correction from 1.3442. But the downside space should be curbed by the 38.2% retracement level of 1.2099 to 1.3442 to bring about a rebound.

Moodys became the fuse for selling U.S. funds, and several Fed officials arrived this week(图2)

Yen: The intraday bias of the US dollar/yen is currently neutral. .The decline from 158.86 may have been completed at 139.87. As long as the support level of 144.02 is held, further rise will be beneficial. Above 148.64, the 61.8% retracement level of 151.60 will be aimed at 158.86 to 139.87. However, a firm breakout of 144.02 will retest the low of 139.87.

Moodys became the fuse for selling U.S. funds, and several Fed officials arrived this week(图3)

The above content is about "[XM Foreign Exchange Market Review]: Moody'sThe fuse of selling US funds, and many Fed officials arrived this week" is carefully compiled and edited by the editor of XM Forex. I hope it will be helpful to your transaction! Thank you for your support!

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