Moody’s Outlook For the Eurozone Goes From Stable to Negative - Forex News by FX Leaders

Moody’s Outlook For the Eurozone Goes From Stable to Negative

Posted Tuesday, January 14, 2020 by
Skerdian Meta • 1 min read

Moody’s rating agency has changed its outlook for sovereign creditworthiness in the euro area for 2020 from stable to negative. The outlook for the Eurozone economy has been negative, but the credit outlook has been stable somehow. Although, it has changed now. Moody’s comments below:

“Our negative outlook for the euro area reflects most member states’ limited buffers to react to a worsening external environment. The deteriorating global environment will weigh on growth in member states’ open economies in 2020, although resilient domestic demand, easy monetary policy and some fiscal easing will mitigate the impact.”

According to Moody’s, the key factors driving the negative outlook are:

1. Deteriorating global environment
2. High public debt ratios
3. Increasingly fragmented political landscape

This is negative for the Euro but more likely in the longer term. EUR/USD is slightly bearish today, but the direction can change pretty soon since there’s no commitment on any side for traders in this pair. The price action has been like this in the last few days, so we will need a catalyst to get this pair going in either direction.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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