Euro Falls as Moody’s May Downgrade Spain’s Credit Rating

The euro dropped today after the Moody’s Investors Service said that Spain’s debt rating is reviewed for the possible downgrade, renewing the concerns about the spreading of the sovereign-debt contagion across the Eurozone.

The Moody’s said that it may downgrade the credit rating because of Spain’s “vulnerability to funding stress”. The leaders of the European Union will meet at the two-day summit in Brussels tomorrow to discuss the permanent system to prevent the fiscal crises. The German Chancellor Angela Merkel ruled out the possibility of the increase of the EU €750 billion rescue fund.

EUR/USD dropped from 1.3377 to 1.3303 as of 09:55 GMT today.

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