Forex News Recap 12.15.2010: Moody’s Warns Spain, GBP Down on Jobs Report, US Firms on CPI


www.fxtimes.com The Euro was softer overnight after Moody’s knocked Spain’s credit rating, the Pound slid following a weak Jobs Report, and in the NY session, the USD firmed after consumer Inflation and Manufacturing Data. Let’s look at our top stories.. Euro Feels Pain From Moody’s Warning on Spain The euro hit a fresh all-time low against the safe-have Swiss franc in European trading hours Wednesday as euro-zone sovereign debt concerns resurfaced after Moody’s Investors Service Inc. placed Spain’s sovereign credit rating on review for downgrade. Moody’s may downgrade its ratings on Spanish government debt, citing the country’s challenging refinancing needs next year and a complicated outlook for the country’s banks and regional governments. The rating agency said a downgrade could be triggered by “Spain’s vulnerability to funding stress given its high refinancing needs in 2011,” a problem that has recently been amplified by fragile market confidence. USD Supported by FOMC, GBP Down on Employment Data US — The USD was supported overnight against the yen and the commodity-linked currencies of Canada and Australia after the Federal Reserve’s policy statement reinforced expectations that it would complete its plan to buy $600 billion of Treasurys by June. The greenback benefited as the Fed didn’t show clear signs that more quantitative easing is needed to revive the US economy. Meanwhile, the pound lost some ground against the dollar after data showed UK unemployment in