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A Look at Euro Crosses ahead of ECB Hike
Euro was hit hard this week by Moody's downgrade of Portugal's credit rating by four notches to junks status. If not for expectation on ECB rate hike on Thursday, and more down the road, the common current could fall even deeper. The common currency will continue to face two contrasting forces, the never-ending worries of sovereign debt crisis in peripheral states, and expectation of more tightening from ECB to guard against second round effect of inflation. The indecisiveness and volatility is clearly manifested in the triangle pattern in EUR/USD that start at 1.4934 back in May. Since then, EUR/USD has been ... (full story)