New information on Moody’s has come to light, says Rep Issa, and committee hearings on the ratings agencies are being cancel as a result so the information can be studied. Sounds a bit ominous.
The dollar is rebound on a bout of risk aversion as US equities continue lower this morning. News that the US housing rebound sputtered in August is contributing to the decline.
EUR/USD eyes session lows at 1.4688, trading now at 1.4715. Expect sovereign bids along the way as reserves are diversified. The market is so long, however, if it gets spooked, central bank buying will only slow the decline.
