- Fitch rating agency
Dukascopy traders were holding short positions on the EUR/USD pair during the last several months. The pair, however, managed to climb almost to 1.40 level. It seems the rally is losing steam, and the uptrend can be over. The main reason for such a suggestion is the strengthening of the U.S. Dollar. The U.S. currency is bought in 62% of all cases across the board by the Dukascopy traders, suggesting they expect it to appreciate.
Janet Yellen's pledge to start raising interest rates soon and a slew of positive fundamental data is supporting the case the Dollar will gain versus other major currencies. Additionally, Fitch Ratings agency affirmed the credit rating of the world's largest economy at the top-notch AAA level, with a stable outlook. The agency rook off the nation's negative ratings watch. The ratings on senior unsecured both foreign and local bonds were unrevised at AAA, while the Country Ceiling was affirmed at AAA. The U.S. debt ceiling and budget agreement were the main concerns for the agency, however, the way U.S. policymakers and politicians avoided casting uncertainty over the faith of the country eliminated any fears. The Congress managed to suspended the debt ceiling until March 15, 2015 and according to the latest tax payments, the date when the government can exhaust its borrowing authority is projected to be postponed.
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