Spain downgrade pushes euro to fresh one-year low vs dollar

ForexNewsNow | Published on June 19, 2010 at 4:18 am

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NEW YORK (Forex News Now) – The euro plunged to a fresh one-year low against the dollar in fx trading on Wednesday, after Standard & Poor’s Corp. downgraded Spain’s longterm credit-rating to double-A with a negative outlook.

In U.S. midday currency trading, EUR/USD struck 1.3203 – its lowest since April 28, 2009. The currency pair later crawled back up to 1.3154, down 0.17 percent on the day.

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The downgrade, which came just a day after both Greece and Portugal’s credit ratings were cut, was by far the day’s most shocking  FX news, heightening fears that Greece’s debt crisis will spread across the euro zone.

In light of the current forex news, meanwhile, the euro is likely to touch support against the greenback around the low of April 22 last year, 1.2884, and encounter resistance around the high of April 12, 1.3626.

Thursday’s currency trading news is likely to be dominated by the publication of a reports on U.S. unemployment  claims and Britain’s housing market. The United Kingdom is also set to make forex news, with the last of its historic election debates, which comes one day after Prime Minister Gordon Brown was taped calling a voter “bigoted,” sparking a media furor as the contested campaign enters its final week.

 

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