The Euro lost momentum across the board after Moody's Investor Service downgraded Ireland rating one notch to Ba1, losing the "investment grade". EUR/USD retreated sharply from 1.4050, falling almost a hundred pips to 1.3960.
The outlook for Ireland remains negative and according to Moody’s the key driver for today’s decision “is the growing possibility that following the end of the current EU/IMF support programme at year-end 2013 Ireland is likely to need further rounds of official financing before it can return to the private market, and the increasing possibility that private sector creditor participation will be required as a precondition for such additional support, in line with recent EU government proposals.”
The EUR/USD currently trades at 1.3970, on its way to the third decline in a row and headed toward the first daily close below 1.40 since March 15.
No comments:
Post a Comment