This news weighs on an already generally risk-averse market, and sparked safe-haven inflows which benefited USD. EUR/USD dropped from 1.2133 before headline to 1.2116. GBP/USD fell around 20 pips to 1.5505 after closing down 0.7%. AUD/USD slid to 1.0258 from 1.0278, vs. 1.0376 late Friday.
According to Moody’s, Finland is now the sole exception among the Aaa-rated euro area sovereigns with a stable outlook.