Archived IMT (2010.07.19)

MOODYs JOINS THE PARTY LATE AGAIN as it downgrades Ireland's bond rating to Aa2 from Aa, the same equivalent bond rating issued by S&P in December. Note that Fitch downgraded Ireland to AA- 13 months ago. Euro shrugs the news and rallies the recovery in late Asian session. Just as we saw EURUSD among the most MODEST losers against the USD during Fridays selloff, were seeing EURUSD a notable gainer in todays trading, which supports expectations for a $1.3030 today, followed by a possible $1.3130 later this week when Fed Chairman Ben Bernanke issues his semi annual testimony to Congress on Wednesday, further explaining the FOMCs downgrades of the US economy. See the chart of EURUSD vs GE-US 10 spread breaking trendline resistance http://www.ashraflaidi.com/articles/yen-takes-slack-from-usd.asp