EURO MODESTLY HIGHER EVEN AS ITALIAN RATINGS CUT
DATE: 13/07/2012
Euro is quoting
slightly higher in Asian trades today, gaining modestly as a recovery from
fresh two year lows continued for the single currency despite the fact that
negative news flow on the economic flow persisted. The global ratings agency
Moody's Investors Service cut Italy's government bond rating to Baa2 from A3
with a negative outlook today.
The ratings firm said that Italy is more likely to experience a further sharp increase in its funding costs, or the loss of market access, than five months ago due to increasingly fragile market confidence. Also, Italy's near-term economic outlook has deteriorated, Moody's said, as shown in both weaker growth and higher unemployment.
The currency markets were mostly unfazed by these moves though and an initial dash under 1.2200 levels was followed by decent buying support for the Euro. Asian markets are mostly trading with gains after Chinese GDP came in at a decent 7.6% for the second quarter of the year. The single currency was last seen hovering at 1.2207 against the greenback.
The ratings firm said that Italy is more likely to experience a further sharp increase in its funding costs, or the loss of market access, than five months ago due to increasingly fragile market confidence. Also, Italy's near-term economic outlook has deteriorated, Moody's said, as shown in both weaker growth and higher unemployment.
The currency markets were mostly unfazed by these moves though and an initial dash under 1.2200 levels was followed by decent buying support for the Euro. Asian markets are mostly trading with gains after Chinese GDP came in at a decent 7.6% for the second quarter of the year. The single currency was last seen hovering at 1.2207 against the greenback.
POWERED BY: COMMODITY INSIGHTS
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