EUR/USD extends losses as S&P;downgrades Republic of Ireland

EUR/USD is down at 1.3815, seeing accelerated losses in the wake of the news that S&P rating agency have moved to lower Ireland’s long-term sovereign credit rating to AA from +AA, outlook negative. S&P said “We have lowered the long-term rating on Ireland because we believe that the fiscal costs to the government of supporting the Irish banking system will be significantly higher than what we had expected when we last lowered the rating in March 2009, and, consequently, that the net general government debt burden will also be significantly higher over the medium term. S&P also warned that the rating could be lowered again if asset quality in the Irish banking system deteriorates at a faster pace. Technical supports for EUR/USD now 1.3805/10, 1.3790/95 and 1.3750.

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