The Euro has come under fire today after forex investors continued to turn their focus on European sovereign debt issues.
Moody's reduced its rating on Spain by one notch to Aa2 and warned that a further downgrade could be in the offing in the future.
Adam Solomon, a forex analyst at Tor FX, points out that these debt concerns could keep interest rates on hold for longer. Remember forex investors are looking for interest rates to rise.
Risk conditions will continue to remain an important influence and the U.S Dollar has been unsettled by the recent increase in oil prices.
However, should oil price rises stay in check then we could be looking to further downside on EUR USD in the form of a strengthening US economy.
"The recent weakness of the U.S Dollar will reverse sharply if the U.S economy continues to gather momentum," says Solomon.
By Euro Exchange
Moody's reduced its rating on Spain by one notch to Aa2 and warned that a further downgrade could be in the offing in the future.
Adam Solomon, a forex analyst at Tor FX, points out that these debt concerns could keep interest rates on hold for longer. Remember forex investors are looking for interest rates to rise.
Risk conditions will continue to remain an important influence and the U.S Dollar has been unsettled by the recent increase in oil prices.
However, should oil price rises stay in check then we could be looking to further downside on EUR USD in the form of a strengthening US economy.
"The recent weakness of the U.S Dollar will reverse sharply if the U.S economy continues to gather momentum," says Solomon.
By Euro Exchange
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