Moody's Changes Germany's Outlook to Negative - 24.7.2012
The euro touched yesterday a two-year low versus the greenback at 1.2066 and approached a 12-year low of 88.85 against the Japanese counterpart reaching the level 94.22. Today the single currency remains under the risk of further weakening as Moody’s Investors Service cut its top-Aaa rating outlook for Germany, the Netherlands and Luxembourg. The agency referred to the rising uncertainty regarding the outcome of the euro area debt crisis, including the risk of Greece's exit from the euro area and the risk of a greater collective support from top rated economies.
Moreover today the composite index for the euro area’s manufacturing and services sectors, calculated by Markit Economics, was reported unchanged at 46.4 for July, indicating the sixth month contraction. The services PMI index rose from 47.1 to 47.6, while the manufacturing index fell from 45.1 to 44.1. The euro was almost flat in Asian trading today against the dollar, at 1.2091-1.2137, before Spain sells bills.