FXstreet.com (Córdoba) - Fitch lowered Greece's credit rating to
C from CCC on Wednesday, and warned that a default is 'highly
likely in the near term' as the group plans to categorize the
region's debt as a 'Restricted Default' once the government
concludes the PSI deal.
Mounting threats of a Greek default reinforces a bearish outlook
for the Euro, and the single currency looks poised to give back the
advance from earlier this year as the fundamental outlook for the
region turns increasingly bleak, according to David Song, currency
analyst at DailyFX.
"As the EUR/USD remains capped by the 100-Day SMA (1.3310), the
pair appears to be putting in a lower top ahead of March, but we
would like to see the pair close below the 50-Day SMA (1.3022) to
set the stage for another test of the 23.6% Fibonacci retracement
from the 2009 high to the 2010 low around 1.2630-50", said the
analyst.