Forex Pros – The euro was slightly lower against the U.S. dollar on Wednesday, after Moody’s Investor Services announced a downgrade of Portugal’s long-term government bond ratings.
EUR/USD hit 1.3959 during early European trade, the daily low; the pair subsequently consolidated at 1.3976, sliding 0.17%.
The pair was likely to find support at 1.3854, Tuesday’s low and resistance at 1.4035, the high of March 7 and a four-month high.
Moody’s downgraded its ratings by two notches, to A3, saying the country will continue to face low growth and funding pressure for years, even if it accesses the European Union’s bailout fund.
“Accessing the European Financial Stability Facility may lead to a reduction in financing costs, but questions would remain as to when the government would be able to re-access the capital markets and on what terms,” Moody’s said.
Meanwhile, the euro edged higher against the yen, with EUR/JPY easing up 0.07% to hit 113.06.
Meanwhile, Japanese authorities were battling to contain the fallout from the damaged Fukushima Daiichi nuclear plant, which was hit by the earthquake and tsunami that engulfed coastal regions of Japan on Friday.
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