Euro under pressure as Spain was downgraded by Fitch with 3 notches

EURUSD dropped yesterday and closed at 1.2569. The single European currency came under pressure, after ratings agency, Fitch, downgraded Spain’s credit rating by three notches to ‘BBB’ from ‘A’, with a negative outlook. At the early European session the pair rose after bond auctions in Spain and France met with robust investor demand. In French bond auction, treasury raised a total 7.8 billion Euro, with 3.5 billion Euro of that coming from the issue of 10-year bonds, at a yield of 2.46 percent for the 10-year notes, down from 2.96 percent from a month ago. Separately, the Spanish Treasury sold 2.288 billion Euro of two, four and ten-year government debt earlier in the day, above the full targeted amount of 2 billion Euro, though at a higher yield. The economic calendar is flat on European economic events today. Support for the EURUSD is seen at 1.2441 and resistance is seen at 1.2608. The Inside View indicator on HotForex shows that 51 percent of the traders are long on the EURUSD

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