After Moody’s cut Portugal ’s credit rating the European officials decided to strike back and accused credit rating agencies of anti-EU bias.
José Manuel Barroso, President of the European Commission, questioned the competence of Moody’s rating service, saying that "Rating agencies are market players and as such they are not immune from market cycles, mistakes and exaggerations that come with them…"
It is interesting that Moody's, Standard & Poor's and Fitch usually downgrade the credit ratings of EU countries in advance or during the eurozone’s major meetings. So there are reasons to suppose that the agencies try to influence the eurozone’s politics and economy, which is unacceptable because rating agencies must be unbiased.
During his visit to Berlin Jean-Claude Juncker, President of the European Council, told reporters that "if governments are taking steps and if the reaction of the ratings agencies is downgrade, governments will not be very eager to take further steps, so I'm calling them to a more responsible behavior…."
Yesterday the ECB made an official announcement:
“The Governing Council of the European Central Bank (ECB) has decided to suspend the application of the minimum credit rating threshold in the collateral eligibility requirements for the purposes of the Eurosystem’s credit operations in the case of marketable debt instruments issued or guaranteed by the Portuguese government. This suspension will be maintained until further notice….”
The announcement neutralized the impact of Moody’s actions.
As a result, European officials’ comments on the destabilizing policies led by international rating agencies supported the common European currency.
FOREX.
According to the SRP Sub-department under the Department of Masterforex-V TS, EURUSD is currently forming bullish wave B H1.If the conditions for maintaining the structure of the H1 downswing are preserved, the price may start working out the RP (reversal point) H1 - 1.4221.
To define the vector of the forthcoming movement we apply the SRP elements and other binary patterns by MF.
