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Forex pairs in this Article » EUR/USD (Barcelona) - Moody's cut France's Aaa sovereign rating by a single notch to Aa1 - the news came in the twilight hours between the New York and Asia sessions when market liquidity was at a premium. Meanwhile, "the EURUSD dropped 40 pips, but we think the damage is now done - Aa1 is still a very strong rating after all, and forced selling seems unlikely." Writes Gareth Berry, a Research Analyst at UBS.

Also, when S&P first stripped France of its AAA rating in January the French sovereign bond market hardly reacted - although granted that earlier downgrade was well signaled in advance.
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