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Fitch Cuts Greece’s Credit Rating to Lowest Investment Grade

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Apr 11, 2010.

  1. forextrends24

    forextrends24 New Member

    Mar 27, 2009
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    Today’s sample of Forex Analysis from ForexHound.com

    The European Union stood ready to rescue Greece if needed after Fitch Ratings cut the country’s credit rating to the lowest investment grade. The move appears to foretell that emergency bailout funding is forthcoming. During today’s session, billionaire George Soros expressed his opinion about Greece by stating that “they have to be given some help from Europe or the IMF at concessional rate”. He then added that “it is make or break time for the Euro and it’s a question whether the political will to hold Europe together is there or not.”

    While Greece remained in limbo over its financial dilemma and the impending bailout, Germany continued to voice opposition to a plan to offer Greece loans at below market interest rates. At this time, details are being worked out for a plan to provide joint EU-International Monetary Fund aid to the debt ridden nation.

    Worried traders drove up the premium to buy Greek 10-year bonds instead of German bunds to 442 basis points. At this level Greece will not be able to service its debt prompting Greek Prime Minister George Papandreou to say that borrowing costs at those levels are unsustainable.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

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