Investing.com - The euro fell to an eight-day low against the U.S. dollar on Thursday, after ratings agency Standard & Poor’s downgraded Spain’s credit rating to one notch above junk status amid ongoing uncertainty over a full-scale bailout for Spain.
EUR/USD hit 1.2826 during early European trade, the pair’s lowest since October 1; the pair subsequently consolidated at 1.2862, slipping 0.09%.
The pair was likely to find support at 1.2802, the low of October 1 and resistance at 1.2912, Wednesday’s high.
S&P cut its rating on Spain to BBB-minus from BBB-plus with a negative outlook late Wednesday, citing “mounting risks to Spain’s public finances.”
The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.
The move brought S&P into line with Moody’s, which downgraded Spain in June.
Sentiment on the euro has been hit by ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.
Elsewhere, International Monetary Fund head Christine Lagarde urged governments to work together to repair the faltering global economy or risk a further slowdown in global growth.
The euro was weaker against the pound and the yen, with EUR/GBP down 0.14% to 0.8032 and EUR/JPY falling 0.28% to 100.37.
Later in the day, the European Central Bank was to publish its monthly bulletin. The U.S. was to publish government data on the trade balance, in addition to official data on initial jobless claims and crude oil stockpiles.
EUR/USD hit 1.2826 during early European trade, the pair’s lowest since October 1; the pair subsequently consolidated at 1.2862, slipping 0.09%.
The pair was likely to find support at 1.2802, the low of October 1 and resistance at 1.2912, Wednesday’s high.
S&P cut its rating on Spain to BBB-minus from BBB-plus with a negative outlook late Wednesday, citing “mounting risks to Spain’s public finances.”
The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.
The move brought S&P into line with Moody’s, which downgraded Spain in June.
Sentiment on the euro has been hit by ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.
Elsewhere, International Monetary Fund head Christine Lagarde urged governments to work together to repair the faltering global economy or risk a further slowdown in global growth.
The euro was weaker against the pound and the yen, with EUR/GBP down 0.14% to 0.8032 and EUR/JPY falling 0.28% to 100.37.
Later in the day, the European Central Bank was to publish its monthly bulletin. The U.S. was to publish government data on the trade balance, in addition to official data on initial jobless claims and crude oil stockpiles.