Euro Slids for Second Day on Debt Crisis Concern

The euro fell against all of its major counterparts today, as the fear of the debt crisis spreading beyond Greece and other troubled countries of the Eurozone.

The euro is currently demonstrating a second bearish day in a row against the US dollar, the Great Britain pound and the Japanese yen. It is falling against the dollar despite the stalemate in the US debt-limit discussions, which may lead to a technical default on August 2.

Greece’s long-term sovereign credit rating was reduced to CC by Standard & Poor’s yesterday. It was also reported by the agency that the proposed measures (by the European Union) will push the rating to SD (selective default), as it will result in losses for the commercial creditors. Meanwhile, Moody’s downgraded Cyrpus from A2 to Baa1 with a negative outlook on its government bonds.

EUR/USD fell from 1.4368 to 1.4304 as of 17:12 GMT; it traded as low as 1.4254 earlier today. Yesterday, the pair opened at 1.4512. EUR/GBP declined from 0.8797 to 0.8756 and EUR/JPY decreased from 111.93 to 111.36.

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