Analytics, News, and Forecasts for CFD Markets: currency news — 23-10-2012.

The euro dropped from a five-month high against the yen after Moody’s Investors Service cut the ratings of five Spanish regions and French industrial confidence fell to the lowest in more than three years.

Moody’s cut the rating of Catalonia by two steps to Ba3, and also lowered Extremadura, Andalucia, Castilla-La Mancha and Murcia. The company said in a statement yesterday the decision was “driven by the deterioration in their liquidity positions, as evidenced by their very limited cash reserves.” A week ago, Moody’s kept Spain’s sovereign rating at Baa3, the lowest investment grade.

The Spanish government told the EU its budget deficit in 2012 will be 7.3 percent of gross domestic product, exceeding a target of 6.3 percent, El Confidencial reported, citing a Spanish report. An index of sentiment among French factory executives fell to 85 in October, the lowest since August 2009, from 90 last month, the statistics office Insee said in Paris.

The 17-nation currency weakened for the third time in four days versus the dollar as Spanish newspaper El Confidencial said the government told the European Union it will miss its budget deficit target this year.

The yen fell past 80 per dollar for the first time in three months as signs Japan’s economy is closer to contraction spurred bets the central bank will boost stimulus. The yen earlier dropped against the dollar as Economy Minister Seiji Maehara, who has been calling for more action from the central bank, said today he may attend the Bank of Japan’s next meeting on Oct. 30 if his schedule permits.

EUR / USD: during the European session the pair fell to a new low of $ 1.2997

GBP / USD: during the European session the pair fell to a new low of $ 1.5977

USD / JPY: during the European session, the pair rose to Y79.95

At 12:30 GMT in Canada will change in the volume of retail sales, including excluding auto sales for August. At 13:00 GMT we will know the decision of the Bank of Canada Interest Rate will be done the accompanying statement of the Bank of Canada. At 14:00 GMT will Eurozone consumer confidence indicator for October. At 20:30 GMT the U.S.will publish the change in the volume of crude oil, according to API.

AUD/USD

Offers  $1.0400, $1.0380/85, $1.0350, $1.0335/40

Bids   $1.0280, $1.0250, $1.0220, $1.0200, $1.0180

GBP/USD

Offers $1.6080, $1.6050, $1.6040

Bids  $1.5980/75, $1.5950, $1.5920

EUR/JPY

Offers  Y105.50, Y105.20, Y105.00, Y104.80

Bids  Y103.85/80, Y103.55/50, Y103.20, Y103.00

USD/JPY

Offers Y80.70, Y80.50, Y80.30/35, Y80.20

Bids   Y79.50, Y79.30, Y79.20, Y79.05/00

EUR/GBP

Offers stg0.8300, stg0.8280, stg0.8250,  stg0.8200, stg0.8180

Bids  stg0.8125/20, stg0.8100, stg0.8085/80, stg0.8070, stg0.8050

The yen weakened past 80 against the dollar for the first time in three months as signs the world’s third-largest economy is closer to contraction fanned speculation that the Bank of Japan will add further stimulus. Japanese Economy Minister Seiji Maehara, who has been calling for more action from the central bank, said today he may attend the BOJ’s next meeting on Oct. 30 if schedule permits. Maehara took part in the previous gathering ended Oct. 5, the first minister to do so for more than nine years.

Demand for the euro was limited before a report today that may show an index of European consumer confidence remained at a more-than three-year low. The European Commission in Brussels will probably say today its initial estimate for sentiment was minus 25.9 in October, according to the median estimate of economists in a Bloomberg News survey. That would match September’s reading that was the lowest since May 2009.

The Australian dollar held onto three days of losses before data forecast to show inflation held near the slowest in 13 years, providing scope for the Reserve Bank to cut borrowing costs. In Australia, the so-called trimmed mean gauge of core consumer prices probably rose 2.2 percent in the three months ended Sept. 30 from a year earlier, according to economists surveyed by Bloomberg before the statistics bureau publishes its inflation report tomorrow. That compares with a 2 percent increase in the previous quarter, the slowest pace since June 1999. The Reserve Bank of Australia targets average annual inflation of 2 percent to 3 percent. Interest-rate swaps data compiled by Bloomberg show traders are almost certain that policy makers will cut the overnight cash rate target by 25 basis points to 3 percent at their next meeting on Nov. 6.

EUR/USD: during the Asian session the pair fell to $1.3050.

GBP/USD: during the Asian session, the pair traded in the range of $1.6005-25.

USD/JPY: during the Asian session, the pair rose to Y80.00, but later backed away from that level.