Rating changes no longer have the signaling effect that could trigger violent capital flows – Commerzbank DollarIndex UnitedStates RatingAgencies
A rating agency downgraded the US Treasury. Economists at Commerzbank analyze implications for the Dollar.A major rating agency has downgraded the US Treasury. USD exchange rates reacted, but so little that you'd better have a magnifying glass handy if you want to find the effect in the chart.
Since foreigners tend to invest in the US at relatively low risk, it is primarily US government bonds that determine the overall attractiveness of the US as an investment destination. But we are not living in the 1980s anymore. Rating changes no longer have the signaling effect that could trigger violent capital flows.Information on these pages contains forward-looking statements that involve risks and uncertainties.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Strong US economic data is double-edged sword for the Dollar – CommerzbankEconomists at Commerzbank analyze Greenback’s outlook after the US GDP data for Q2 provided some strong support for the USD last week. Further tighten
Read more »
Fitch cuts US credit rating to AA+; Treasury calls it 'arbitrary'Rating agency Fitch on Tuesday downgraded the U.S. government's top credit rating, a move that drew an angry response from the White House and surprised investors, coming despite the resolution of the debt ceiling crisis two months ago.
Read more »
Fitch downgrades US debt rating | CNN BusinessJUST IN: Credit rating agency Fitch has downgraded the US rating from its highest AAA rank to AA+
Read more »
Dollar shaky after US credit rating downgradeThe dollar struggled to make headway on Wednesday after a cut on the U.S. government's top credit rating by Fitch raised questions about the country's fiscal outlook, though it drew some support from a relatively resilient run of economic data.
Read more »
Yuan’s choppiness will likely continue in the near term – CommerzbankThe Yuan experienced a few choppy weeks in July. Economists at Commerzbank analyze CNY outlook. Policymakers need to act fast The Yuan experienced a f
Read more »
EUR/USD will not receive any momentum any longer if the ECB follows the Fed – CommerzbankThe European central bankers are copying the behavior of their colleagues in the US. Economists at Commerzbank analyze the implications for the EUR/US
Read more »