EUR/USD has galloped towards 1.09. The economists of ING They analyze the pair’s prospects.
Risk in Italy’s rating
EUR/USD briefly recovered on Thursday on the back of initial jobless claims data, but it is not evident that there is a clear and immediate catalyst for a breakout to the upside.
After today’s closing, andThere is a risk that Moody’s will make a decision on Italy’s rating. Moody’s has the Italian sovereign rating one notch above “junk” and with a negative outlook. However, we doubt that Moody’s will downgrade Italy’s rating to “junk” today, as it would not want to be seen to be starting a turmoil in European government bond markets.
However, a downgrade would be a surprise and would renew interest in a possible showdown between Italy and Brussels early next year if the eurozone debt brake were introduced. This would be negative for the Euro and, in our opinion, would put EUR/CHF back at 0.95.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
