EUR/USD: Euro is being sold out again

The pair EUR/USD is traded downward at the Forex currency market on Friday morning.

By 9.25 the Euro is at 1.3311 against yesterday’s closing level of 1.3315.

The motive for the sale was markets’ concerns about developments in Europe. Thus, yesterday rating agency Fitch downgraded the rating of Portugal, maintaining “negative” forecast, for the reason that presently there are no positive prospects in the economy. It also became known this morning that agency Moody’ downgraded rating of Hungary with the “negative forecast” as well. Earlier Hungary asked for financial aid from IMF ”just in case”

In addition, investors started to talk again that there is a chance of increasing capital reserve requirements for those banks that forgave half of the Greek debt. It is also possible that Eurozone will need about 106 billion euro to recapitalize of 70 large banks of the region.

Most likely, the pair EUR/USD will not go beyond the range of 1.3290-1.3380 at the trading session on Friday.