Greek Downgrade by Fitch

As I mentioned earlier this morning, we will hear from the rating's agencies, I'm surprised to see it this early and surprised it was the French based, Fitch (I would think Sarkozy would have been sitting in front of their offices all night giving them the "hairy eyeball").

Fitch from FXStreet:

Fitch cuts Greece's rating to 'restricted default'

The downgrade to 'RD' reflects Fitch's previous commentary that the exchange would constitute a sovereign default event under the agency's distressed debt exchange (DDE) rating criteria, and follows the downgrade of Greece to 'C' from 'CCC'  on 22 February. 


Essentially this is a downgrade from C to Restricted Default.


Here's the Euro/USD pair...

While the true extent of the Euro/SPY relationship will be seen later in the Risk Asset/Credit template, this gives you an idea of the head winds the market is trying to rally against, in my opinion there's only 1 good reason for such an attempt.