Tuesday, January 3, 2012

S & P put France in the watch list, Euro will remain difficult

On Tuesday, the euro has just recovered from the holidays suffered from the rating agency's "New Year's gifts": Standard Poor rated the French in watch list. Despite the strong German employment data recorded up to support the euro days, under the background of the ratings alarm and a large number of euro area debt in the context of economic, the euro will remain difficult.

In recent days the euro rebounded against the dollar, breaking 1.30. Earlier this week, Germany's unexpectedly strong employment data for the euro can rise on the action. Data show that in Dec, German adjusted unemployment rate to 6.8%, lower than the previous 6.9%; thus in 2011 the average unemployment rate hit its lowest level in 20 years.

However, in the European market trading, the rating agency Standard & Poor's sovereign French credit rates on watch list, suggesting that the French downgrade risks remain, the market renewed concern for the euro, euro rally is also facing a potential threat. In general, the ratings were placed on watch list means that in the next 90 days French will have 50% chance of being downgraded.

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