There may be some new twist in the coming months with regard to the level of ratings assigned by agencies at the Eurozone countries sovereign debt. After the downgrade on Greece in recent days, the dark Fitch also lowered its rating on Portugal in regards to long-term debt and stoking expectations which is basically triggering a real chain reaction with downgrades that could now be of interest to other European countries in the coming weeks.
Under this scenario, the expense may be just with the euro, which in the last 24 hours has pulled it’s breath against the dollar after testing the downward portion at 1.33, but in recent weeks has failed to attack the threshold of 1.40, which lost because the “Greek case” had not been well managed at the European level. This is why it’s good to new a little fundamental information in conjunction with your technical forex trading system. Moreover, the economic recovery in the EU is slow, and it will take several months if not years, to ensure that the accounts of each country eurozone return faithfully to the respected constraints of the Stability Pact. Meanwhile, Greece has returned to challenge the market with a bond issue for a total of five billion euro.
Apparently the offer was fully covered as the institutional bids submitted for a total of seven billion euro, but in any case the returns that the country has to offer to attract the Hellenic capital are twice the German Bund, which clearly affects the already shaky public finances. Greece has organized this time to issue stronger safety net developed by the countries of the Eurozone, it is a lifesaver that will be launched but could also never be used. If you want more understanding of this foreign currency market then you need to take a peek at the slumdog forex trading course which really illuminates this market for anyone who does not fully understand it.