The euro inclined today against the dollar and the Swiss franc, after Greece denied preparations for default, especially with talks held by the Greek finance minister Evangelos Venizelos, who will continue the emergency teleconference with international lenders later today, as the minister said yesterday that he has held substantive discussions with the European Union and International Monetary Funds officials regarding the next installment of 2010's aid package and the new bailout.
On the other hand, S&P's cut Italy's credit rating with a negative outlook on fear the weakening growth and the fragile government will not be able to cut and handle the second largest debt in the euro area, according to the statement from S&P yesterday.
However, this move was expected sooner or later especially when spending cuts and austerity measures in light of the worsening debt crisis in Europe will weigh on growth and that is obvious.
The euro rebounded to the upside today against the U.S. dollar after reaching a low of 1.3590 to set a high of 1.3743, however, the pair eased from the highest level recorded to trade now around 1.3691, noting that the opening level was at 1.3682.
Technically speaking, trading above 1.3665 should support the pair to cover the bearish opening gap seen yesterday, before returning to the general downside trend.
The U.S. dollar index (USDIX), which tracks the dollar's movement against other major currencies, fluctuated heavily today, affected by the volatile common currency, where the dollar opened the session today at 77.05, and recorded a high of 77.44 and a low of 76.83 and is currently hovering around 77.12.
Regarding the EUR/CHF, the pair rebounded to the upside after opening the session at 1.2068 to reach a high of 1.2212, however, the pair eased now to trade around 1.2125.