Investing.com - The euro traded lower against the dollar on Thursday after Standard & Poor's downgraded Spain for the third time this year and slapped a negative outlook on the country.
In Asian trading on Thursday, EUR/USD was trading down 0.14% at 1.2857, up from a session low of 1.2856, and off from a high of 1.2860.
The pair was likely to find near-term support at 1.2802, the low of October 1 and resistance at 1.2990, Tuesday’s high.
Standard & Poor's said it lowered Spain's long-term credit rating to 'BBB-' from 'BBB+' and cut its short-term credit rating to 'A-3' from 'A-2'.
The ratings agency said Spain's deepening economic recession is limiting the Spanish government's policy options and added that rising unemployment and spending constraints are likely to fuel social discontent and contribute to friction between Spain's central and regional governments.
"In our view, the capacity of Spain's political institutions (both domestic and multilateral) to deal with the severe challenges posed by the current economic and financial crisis is declining," Standard & Poor's said in a statement.
Elsewhere, uncertainty as to whether Spain will request a bailout kept the euro lower as well, all helping to offset French and Italian industrial production figures, which beat expectations.
Italian industrial production rose unexpectedly in August.
In a report, Istat said that Italian industrial production rose to 1.7% in August from -0.1% in July, whose figure was revised up from -0.2%.
Analysts had expected Italian industrial production to fall -0.4% last month.
French industrial output rose unexpectedly in August as well.
In a report, INSEE said that French industrial production rose to 1.5% in August from 0.6% in July, whose figure was revised up from 0.2%.
Analysts had expected French industrial production to fall -0.2% last month.
Meanwhile, IMF statements pointing to the European debt crisis as the global economy's strongest headwind fueled the euro sell-off early in Asian trading as well.
The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP trading down 0.14% at 0.8033, and EUR/JPY trading down 0.30% at 100.37.
Later Thursday, the ECB is to publish its monthly bulletin, with analyzes current and future economic conditions from the bank’s perspective.
The U.S. will release government data on the trade balance, initial jobless claims, import prices and crude oil stockpiles.
Also Thursday, finance ministers and central bankers from the G7 group of industrialized nations are due to hold talks in Tokyo.
In Asian trading on Thursday, EUR/USD was trading down 0.14% at 1.2857, up from a session low of 1.2856, and off from a high of 1.2860.
The pair was likely to find near-term support at 1.2802, the low of October 1 and resistance at 1.2990, Tuesday’s high.
Standard & Poor's said it lowered Spain's long-term credit rating to 'BBB-' from 'BBB+' and cut its short-term credit rating to 'A-3' from 'A-2'.
The ratings agency said Spain's deepening economic recession is limiting the Spanish government's policy options and added that rising unemployment and spending constraints are likely to fuel social discontent and contribute to friction between Spain's central and regional governments.
"In our view, the capacity of Spain's political institutions (both domestic and multilateral) to deal with the severe challenges posed by the current economic and financial crisis is declining," Standard & Poor's said in a statement.
Elsewhere, uncertainty as to whether Spain will request a bailout kept the euro lower as well, all helping to offset French and Italian industrial production figures, which beat expectations.
Italian industrial production rose unexpectedly in August.
In a report, Istat said that Italian industrial production rose to 1.7% in August from -0.1% in July, whose figure was revised up from -0.2%.
Analysts had expected Italian industrial production to fall -0.4% last month.
French industrial output rose unexpectedly in August as well.
In a report, INSEE said that French industrial production rose to 1.5% in August from 0.6% in July, whose figure was revised up from 0.2%.
Analysts had expected French industrial production to fall -0.2% last month.
Meanwhile, IMF statements pointing to the European debt crisis as the global economy's strongest headwind fueled the euro sell-off early in Asian trading as well.
The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP trading down 0.14% at 0.8033, and EUR/JPY trading down 0.30% at 100.37.
Later Thursday, the ECB is to publish its monthly bulletin, with analyzes current and future economic conditions from the bank’s perspective.
The U.S. will release government data on the trade balance, initial jobless claims, import prices and crude oil stockpiles.
Also Thursday, finance ministers and central bankers from the G7 group of industrialized nations are due to hold talks in Tokyo.