FXstreet.com (Barcelona) - The risk environment was more constructive overnight after Moody's affirmed the Spanish sovereign rating at Baa3, with a negative outlook. Having already been trading on a buoyant tone yesterday however, the Euro received another boost with the announcement.
According to Research Analyst Chris Walker at UBS, “The decision removed an immediate risk that Spain gets downgraded to junk category, which could have led to some forced structural selling of Spanish debt by real money accounts.”
“Amidst this temporary elixir to Spanish woes, we reiterate our short-term bullishness for the EUR/USD – a break above the 1.3072 level would trigger further acceleration of the recovery towards 1.3172. Conversely, support lies at 1.2891 ahead of 1.2802.” Walker adds.
According to Research Analyst Chris Walker at UBS, “The decision removed an immediate risk that Spain gets downgraded to junk category, which could have led to some forced structural selling of Spanish debt by real money accounts.”
“Amidst this temporary elixir to Spanish woes, we reiterate our short-term bullishness for the EUR/USD – a break above the 1.3072 level would trigger further acceleration of the recovery towards 1.3172. Conversely, support lies at 1.2891 ahead of 1.2802.” Walker adds.
