Late yesterday Moody’s Investor Service announced that they were cutting the debt ratings of several Eurozone countries, including most notably Italy, Portugal and Spain. Moody’s also said, citing the debt crisis, that it might also consider a downgrade to Austria, the U.K. and France. The Moody’s decision follows S&P’s downgrade earlier this year, so for the most part, traders were generally unsurprised by the announcement except for the timing, which analysts expect will have only little enduring impact on the Euro. Indeed, the EUR/USD is currently flirting with the opening price of 1.3168, and a bullish sentiment prevails on OpenBook.
On the OpenBook, quite a few traders of the EUR/USD pair seem to be content with scalping small returns. Over the past few hours OpenBook guru Gavinwright has closed out a string of long positions in the pair with gains ranging from 0.5% to 6% and holds several more open longs with the first target approaching. Guru pyruss is another who is waiting for a Euro recovery to hit break even on his long position which targets 1.3197, with several more longs behind it that would need a more sustainable rally. Likewise guru MPL1983 is sitting on two open longs already showing a profit. One OpenBook trader who held out for a higher gain was mcmkiama08 who closed a short position in the EUR/USD pair when it hit 1.3141, giving this trader a 64% return.
Later, Eurostat will be releasing December’s industrial production figures for the EMU and a consensus of analysts forecasts a year-over-year decline to -1.0% from the previous print of -0.3%. Also expected are the EMU and German ZEW surveys of economic sentiment for February, which analysts expect could show some improvement. The forecast is for the EMU survey to improve to -21.1 from -32.5 and the German survey to improve to -15.0 from -21.6.
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