FXstreet.com (Barcelona) - Surprisingly, and teeth of losing its Asian advantage, the Euro held up just around its Friday's US musty at 1.3395 coming from a high of 1.3480, after the new talks by the Merkozy front to seek new EU economic treaty was overshadow by an official release from S&P, in which the rating agency warned the whole Eurozone compass is now at risk of being downgraded, including the remaining 6 countries still enjoying an AAA rate. Christopher Vecchio, Currency Analyst at DailyFX: "The U.S. Dollar supply-off continued early Monday following constructive commentary from the Franco-German leadership chunk but the risk-rally led by the commodity currency block was short-lived. After European neutrality markets closed, a report published by the Financial Times and later confirmed by the Rampart St. Journal indicated that Standard & Poor’s would place all 17 Euro-zone members on creditwatch voiding. This means that the core Euro-zone countries, primarily the Benelux, France, and Germany, would see their AAA ratings cut." As bloomberg reported: "Downgrades of Germany and France would strike the rating of the European Financial Stability Facility, the bailout fund for struggling euro fellow countries that has funded rescue packages for Greece, Ireland and Portugal partly through bond sales. If the EFSF has to pay higher interest on its bonds, it may not be able to provide as much funding for owing nations." "As the European Central Bank policy meeting on Thursday and the Euro-zone zenith on Friday approach, markets are expected to remain exceptionally volatile. Prevailing forward, with the current options on the table pointing towards either the exit of one or more Euro-zone members or the European Prime Bank monetizing debt, the Euro looks exceptionally vulnerable and is expected to yield significantly in the medium-term" Christopher concluded. © 2011 “FXstreet.com. The Forex Make available” All Rights Reserved. Every effort is made to provide accurate and complete data. However, with the thousands of documents available, often uploaded within short deadlines, we cannot guarantee that there will be no errors. Any republication or redistribution of FXstreet.com pleasure is expressly prohibited without the prior written consent of FXstreet.com. Trading unrelated exchange on margin carries a high level of risk and may not be suitable for all investors. The ripe degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully think about your investment objectives, level of experience and risk appetite. The possibility exists that you could keep up a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be au fait of all the risks associated with foreign exchange trading and seek advice from an non-affiliated financial advisor if you have any doubts. Any opinions, news, research, analyses, prices or other tidings contained on this story, by FXstreet.com, its employees, partners or contributors, is provided as encyclopaedic market commentary and does not constitute investment advice. FXstreet.com will not stand liability for any loss or damage, including without limitation to, any loss of profit, which may spring up directly or indirectly from use of or reliance on such information. Trading foreign exchange on scope carries a high level of risk and may not be suitable for all investors. The high inch by inch of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully ponder your investment objectives, level of experience and risk appetite. The possibility exists that you could prop up a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be posted of all the risks associated with foreign exchange trading and seek advice from an separated financial advisor if you have any doubts. Opinions expressed at FXstreet.com are those of the individual authors and do not certainly represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or foundation-in-fact of any claim or statement made by any independent author: errors and Omissions may take place.Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as non-exclusive market commentary and does not constitute investment advice. FXstreet.com will not accede to liability for any loss or damage, including without limitation to, any loss of profit, which may climb directly or indirectly from use of or reliance on such information.
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