FXstreet.com (London) - Earlier today downgrades on Greece hurt the Euro. Greece is now seen as more likely to default on financial obligations. Worries of a European default have been bounded around the markets, however dampened to a degree by the promised defence of the EU in such a case. Should Greece default, serious doubts would be cast over the Eurozone and a game of guess-whose-next would likely ensue.

Greece has found itself shortchanged after it loaned cash around the Eastern European states, cash it would never see returned in many cases. Heavy debts combined with political problems and growing social unrest will have certainly precipitated todays rates cut, from AAA- to BBB+.

Should a more economically established nation face a similar fate to Greece, Italy or Spain for instance, fingers may begin to point to a failing on the Euro and an ill-functioning currency.

Euro came off over 150 pips yesterday against the dollar and is currently quoted at 1.4732/3 midway through the Asian session. So far in session, EUR/USD has rebounded from oversold corrections, winning back 40 pips as it rose steadily from the open of 1.4691.