Moody’s Investors Service has just downgraded the sovereign ratings of Italy, Spain , Portugal , Slovakia, Slovenia and Malta. Moreover, the rating agency warns the UK, France and Austria about possible rating cuts. The major reason is the escalating eurozone crisis.
The rating cuts will definitely have a negative impact on financial market, which will stay sensitive to shocks and negative factors.
It should be noted that Spain got its rating cut from A1 down to A3, Italy’s rating was cut from A2 down to A3, Portugal ’s rating was cut to Ва3. The forecast is negative.
After the shocking news, the Euro depreciated against the US Dollar down to 1,3154. Earlier this week EURUSD hit 1.3280.
According to , at the beginning of the European trading session, the 6E futures (EURUSD) stayed close to 1.3150 – the closest resistance level. A break above 1.3150 will give the pair an opportunity to test 1.3200. Once the price consolidates below 1.3150, it may well decline down to 1.3100.
