Portugal looks to be moving closer to some sort of bailout after being downgraded yet again, this time by Moody’s. The price to insure Portuguese sovereign debt (CDS) has risen from 579 bps at yesterday’s close, to 597 bps today, according to CMA Datavision.
Between the negative news on Portugal and Bernanke’s slightly more hawkish than usual comments, the euro has slid back a bit. Remember, markets are now firmly expecting the ECB to hike rates Thursday by 0.25%.
Note, the euro’s slide off of yesterday’s highs.