The downgrades have taken up most of the oxygen in the room today but the bigger news is that Greece (and the rest of the EU) and the banks are miles apart in the PSI talks. Even if that deal gets done, Greece would have a very difficult time sustaining its debt. Without it, they default by the end of March.
It’s crunch time, kids.
Anyone who wants to buy EUR/USD weakness because the downgrades are “old news” needs their head examined.
It’s a shell game. Don’t get caught watching the downgrades. Watch Greece.