A look at the last 18 or so hours in euroland will reveal one thing: Moody’s is a joke.
On the chart below, look at the uber-early hours of the US day, during which Moody’s downgraded Portugal by two notches. The euro plunged. The second fall was right on the news, while the first may have been the result of the news having been leaked in some manner.
But that was it. The euro stormed back, ending the US day above $1.27, while the overall markets went into overdrive.
Today Moody’s got downgraded.