S&P has downgraded Spain ’s sovereign rating by 2 steps at a time from A to BBB+. The forecast is negative as well. The short-term Spanish rating is cut from А-1 down to А-2.
The rating cuts reflect Standard & Poor's concerns over Spain ’s public debt, which is growing against the national GDP, thus making it more difficult for the Spanish authorities to service the debts. Some experts say the economic situation in the country may worsen, thus urging the authorities to support the financial sector.
The rating agency has also downgraded the Spanish GDP forecast for 2012. They anticipate a 1.5% decline.
Forex.
According to the Department of Market Volume Analysis of , in terms of trading volume, this week’s major volume cluster around 1.3205 is the crucial area for the EURUSD futures contract. Any action above it will suggest the bulls’ domination. The major levels of resistance are 1.3210, 1.3237. Sales below 1.3175 may initiate a downswing. However, the closest major levels of support are located within the 1.3150 - 1.3126 area. 1.3138 is the strongest one.
