Forex: EUR/USD looking top-heavy after Spain's S&P downgrade
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EUR/USD
FXstreet.com (San Francisco) - The EURUSD pair is selling off after the ratings agency S&P just announced it has cut Spain's sovereign debt rating from BBB+ to BBB-, with Outlook Negative.
The statement from S&P reads: "The downgrade reflects our view of mounting risks to Spain's public finances, due to rising economic and political pressures."
S&P adds: "In our view, the capacity of Spain's political institutions (both domestic and multilateral) to deal with the severe challenges posed by the current economic and financial crisis is declining, and therefore, in accordance with our rating methodology & we have lowered the rating by two notches."
EURUSD last trades at 1.2875 vs. 1.2899 at the closing bell in New York. If the downward momentum persists in the hours ahead, a retest of support at 1.2835 looks to be in store. Below there, support is noted at 1.2805 (Oct 1 low), then 1.2760 (50-day EMA).
The statement from S&P reads: "The downgrade reflects our view of mounting risks to Spain's public finances, due to rising economic and political pressures."
S&P adds: "In our view, the capacity of Spain's political institutions (both domestic and multilateral) to deal with the severe challenges posed by the current economic and financial crisis is declining, and therefore, in accordance with our rating methodology & we have lowered the rating by two notches."
EURUSD last trades at 1.2875 vs. 1.2899 at the closing bell in New York. If the downward momentum persists in the hours ahead, a retest of support at 1.2835 looks to be in store. Below there, support is noted at 1.2805 (Oct 1 low), then 1.2760 (50-day EMA).
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