Italy Downgraded, But Euro Remains Higher in Forex Trading

Currency trading with the euro

Italy was downgraded by Standard & Poor’s earlier, finally losing its A+ rating for an A. Many have been waiting for this moment for a while, though, so it was rather anticlimactic, and did little to hinder the euro in its gains today in forex trading.

Instead, forex traders are focusing on the fact that a Greek audit seems to indicate that things aren’t as bad as originally thought in that country, and they are also looking at the performance of equities today. Stocks are headed higher, and that is helping high beta currencies and a general optimism and risk appetite.

There is still a long way to go, however. There are still questions that need to be answered about different euro zone countries, and the debt crisis is far from solved. 

See Also

• Euro in Forex Trading
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