Growing speculations that most of the debt-ridden nations of the Euro zone are going to cause a cut in their credit ratings is going to continue sustaining pressure on the Euro in the coming week. This is going to be further compounded by the fact that the Euro zone economy is going to face further slowdown. This has resulted in the sentiments of the investors being affected greatly.
The market has reacted negatively to the fiscal accord that had been reached by the EU leaders when they met at a summit in Brussels earlier in the month. The whole effort has been termed as a disappointment. This has prompted the financial analysts to state that there are very less chances of preventing the Euro from reaching further all-time lows in the year 2011.
As has been reported by us earlier, the credit rating agency Standard & Poor’s has already threatened, prior to the EU summit, that the credit ratings of at least 15 of the Euro zone countries were expected to be downgraded. France was one of the nations in the list of countries that would suffer these rating cuts.