EUR/USD Resumes Downfall on Moody’s Downgrades

EUR/USD sank today, following yesterday’s gains, and resumed its downfall that had started on October 18. Moody’s Investors Service downgraded credit ratings of five Spanish regions, even though the rating agency maintained the sovereign rating of Spain itself last week. Adding to the negative sentiment, the US manufacturing index went unexpectedly to the negative territory.


Richmond Fed manufacturing index fell to -7 in October, while it was expected to stay near the September’s reading of 4. The report also said that the outlook for the future business activity also deteriorated. (Event A on the chart.)
On Friday, a report on existing home sales was released, showing a drop by the seasonally adjusted annual rate of 4.75 million in September from an upwardly revised 4.83 million in August, which was near the forecast. (Not shown on the chart.)