24 Sep 2013
Flash: EUR/USD subject to Italy’s on going problems
FXstreet.com (London) - Research teams at BBH note that there are continuous concerns over European nations.
Key Quotes:
“Rumors of a downgrade that circulated in the European afternoon reflect ongoing concerns”.
“S&P had cut Italy's sovereign rating to BBB in July, matching the comparable Moody rating. That leaves Fitch, with its BBB+ rating as the outlier. If Italy is to be downgraded then, Fitch would be the most likely suspect. This would be a catch-up move and may not be disruptive for investors”.
“While much attention has been focused on the Senate debate over enforcing the ban from public office on the Berlusconi, who was found guilty of tax evasion, that is only one flash point in the growing tensions in the unprecedented center-right/center-left government led by Prime Minister Letta”.
Key Quotes:
“Rumors of a downgrade that circulated in the European afternoon reflect ongoing concerns”.
“S&P had cut Italy's sovereign rating to BBB in July, matching the comparable Moody rating. That leaves Fitch, with its BBB+ rating as the outlier. If Italy is to be downgraded then, Fitch would be the most likely suspect. This would be a catch-up move and may not be disruptive for investors”.
“While much attention has been focused on the Senate debate over enforcing the ban from public office on the Berlusconi, who was found guilty of tax evasion, that is only one flash point in the growing tensions in the unprecedented center-right/center-left government led by Prime Minister Letta”.