The euro was gaining ground again vis-a-vis the US Dollar today, trading at 1.4208 as of around 8:00 A.M., GMT.
The single currency is up 0.332% on the day and has reached a session high of 1.4282 with a low of 1.4162 so far.
The euro has also reached a four-day high after ratings agency Moody’s warned that the U.S. may lose its top-notch credit rating in wake of the stalemate regarding the level of its debt ceiling.
Yet despite the euro’s renewed strength, the euro zone remains in turmoil, as evidenced by rating agency Fitch’s downgrade of Greece on Wednesday to “CCC”, which indicates that the country presents a real risk of non-payment, according to the rating agency.
Investors, however, did find some cause for optimism on Wednesday when Fitch said that Italy should be able to meet its objectives of reducing its public deficit with its austerity plan, and thus maintain its current credit rating.
This is what the analysts had to say about the EUR/USD currency pair in the near-term:
– “The investors’ radar has temporarily left the crisis in the euro zone to analyze the problems of the United States. The market will focus on indicators across the Atlantic to check the health of the U.S. economy,” said Dai Sato from Mizuho Corporate Bank.
-John Kyriakopolous, strategist at National Australia Bank said that “despite the crisis in Europe, the euro is taking advantage of the dissension on the debt ceiling in the United States.”