Euro Struggles to Keep Upward Momentum

The euro was trying to continue its march upward during the Friday’s trading session but had troubles due to the concerns about the wellbeing of the eurozone and Greece in particular.

Standard & Poor’s downgraded Greece’s credit rating, announcing:

On April 15, 2015, Standard & Poor’s Ratings Services lowered its long- and short-term sovereign credit ratings on the Hellenic Republic (Greece) to ‘CCC+/C’ from ‘B-/B’. At the same time, Standard & Poor’s removed these ratings from CreditWatch, where it had placed them with negative implications on Jan. 28, 2015. The outlook is negative.

Friday’s reports from the eurozone were not good, showing that the region remained in deflation and its current-account surplus shrank. All these factors were bad enough for the euro, but adding to the woes of the currency the US consumer sentiment improved more than was anticipated. As a result, the euro’s rally stalled and there is a high probability that the shared 19-nation currency will start moving down next week.

EUR/USD was up from 1.0763 to 1.0788 as of 18:03 GMT today, retreating from the daily high of 1.0848. EUR/GBP ticked up from 0.7204 to 0.7212, bouncing from the daily low of 0.7168. EUR/JPY moved from 128.11 a little higher to 128.22.

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