EUR/USD: EURO is growing, amid bad news from the USA
The pair EUR/USD is traded upward on Thursday morning, supported by external background factors.
By 9.45 Moscow time the Euro is at 1.4200 against yesterday’s closing level of 1.4165.
Positions of the USD begun to decline because rating agency Moody's is going to revise the rating of the U.S. bonds ,which is now AAA, with the prospects of downgrade; that has never happened since 1995. At the moment Congress cannot reach consensus regarding the increase of the maximum permissible level of public debt, which is now at the level of $14.3 trillion.
According to Moody's, lack of decision on this issue creates risk of short term default, which agency evaluates as “small”.
At the same time agency Fitch has revised Greece rating to the level of CCC from B+, making it worse.
Therefore, there are plenty external momentums for movement.
Most likely the pair EUR/USD will not go beyond the range of 1.4150-1.4270 at the trading session on Thursday.
