EUR/USD fell after the news of S&P downgrading Greece to CCC from B, however the selloff was short-lived. 

The currency pair fell to a low of 1.4345 before soaring to a daily high of 1.4430.

After the S&P announcement, Greece responded with the following statements:

Greece: Says it remains committed to fiscal program

Greece: Says S&P downgrade overlooks EU, IMF, and ECB attempts at financing

Trichet also spoke 30 minutes ago with CNN saying the ECB's main aim is to 'deliver price stability' and there is a 'likelihood' the ECB could increase rates in July.

The EUR/USD looks poised for further gains towards 1.45 in the coming Asian and European sessions, however one important risk event to pay attention to tonight is China's inflation numbers at 10:00PM EST.

 

Read: S&P Downgrades Greece to CCC from B with Negative Outlook

Read: EUR/USD: Weekly Forecast