Forex: EUR/USD eases on S&P downgrades

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FXstreet.com (Barcelona) - The EUR/USD has hit a wall at 1.3060 after the rally on Spain's reported request of an emergency credit line soon to be accepted by German lawmakers. A second attempt at extending the upside failed at that price level again, and then the pair came down to as low as 1.3022 in reaction to the S&P rating downgrade of 15 Spanish banks, including a cut of long-term ratings of 11 banks and a cut of short-term ratings in case of 4 banks.

The EUR/USD is now trading around 1.3030, 30 pips down from its daily highs. The pair is still edging higher on the day, by +0.48% ( GMT ). Earlier, the US CPI and industrial production came in higher than expected, at 2.0% in September and US industrial production grew by 0.4% in September.

The US markets, in earnings season, are edging higher on Tuesday. So are doing the European bourses as they prepare to close for the day. "We continue to suspect that the market will struggle to regain 1.3072. However while under pinned by the 1.2801 3 month uptrend further upside probes remain plausible", wrote Commerzbank analyst Karen Jones.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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