Moody’s has cut Greece to BA1 from A3.
Combined with comments from Merkel and Sarkozy, EUR/USD has pulled back to the 1.2230 support area.
Merkel and Sarkozy are calling for greater financial regulation, a securities transaction tax, strengthening the stability pact, reopening the EU treaty. They also say that Spain can tap the EU bailout scheme if needed.
Sounds like a serious hornets nest they are willing to poke…
Look for stops below 1.2225 level after several stalls near 1.2230 on pullbacks.
