The euro dropped today after Moody’s followed Standard & Poor’s as it warned about possible downgrades of the European countries. The shared 17-nation currency fell against the dollar and the yen.
The summit of the European leaders has came and gone. It even brought some results. But, apparently, it wasn’t enough to convince everybody that the eurozone can deal with its crisis. Certainly, Moody’s Rating Service wasn’t impressed and signaled that the sovereign ratings of the European countries are in danger. The rating agency wrote:
In view of the continued absence of decisive policy measures despite the recent euro area summit, Moody’s Investors Service is reiterating its intention to revisit the ratings of all EU sovereigns during the first quarter of 2012. As Moody’s had stated in November, this is because the absence of measures to stabilise credit markets over the short term means that the euro area, and the wider EU, remain prone to further shocks and the cohesion of the euro area under continued threat.
EUR/USD tumbled from 1.3380 to 1.3274 and EUR/JPY dropped from 103.88 to 103.29 today as of 12:50 GMT.
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