Rating agency Moody’s maintained its AAA rating on the EU but changed the outlook to negative. The negative outlook is due to the deterioration in the creditworthiness of EU member Countries. However Euro has maintained its strength against USD and moving at 1.26 + level. EURO is gaining strength due to the expectation that ECB chairman may announce Bond buying on Thursday. USD index is moving around 81 and showing weak due to the poor Economic news in Asia & Europe which may forced Central Banks all over the World to announce stimulus to boost the Market. Gold & Crude price has remained strong at USD1690 & USD 115 with the expectation that Central Banks all over the World will announce stimulus to boost Economy. Stimulus always hikes commodity prices .Looking into the strong Economic growth and reasonable inflation, Australian Central Bank has kept the interest rate unchanged at 3.5%. Inflation of Australia is around 2% and likely to remain like that for the next one year. Indian Equity Market has not taken the GAAR deferment news so positively as policy reform and Economic data continued to be concerning for India. INR continued to be range bound between 55~55.70. The increase in Trade deficit & decreasing Export in July 2012 will have negative impact to INR
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