Citigroup anticipates several eurozone economies to get their ratings cut. In particular, France’s sovereign rating is expected to be downgraded by several levels within a couple of years. Spain and Italy may have their ratings downgraded within months.
In the meantime, the expert do not question the EU, ECB and IMF’s intension to provide Spain with a substantial loan. At this point, the Spanish bond yield has come close to 6%. If the yield keeps growing, this will be a wake-up call for financial markets.
Forex.
According to , EURUSD is retracing against the recent upswing - wave «а(С)/С» 1,3068-1,3224 of wave level H6. A break above 1,3221with a bullish FZR will confirm the bullish scenario. Alternatively, a break below 1,3071 will result in a change of trend.
