Euro outlook – Euro shrugs off Spain Rating cut in early trading in Tokyo

Euro falls from the 1.2306 to 1.2264 in early morning trading in Tokyo. Not as steep a fall as we expected but we may see some action when New York opens later today. At the same time the reaction is fairly muted compared to the whiplash we saw earlier. In the news today there is coverage about another 195 billion Euro in bank losses as the second wave of the economic crisis hits the Eurozone.