Moody's downgrades Greece once again!

•  Markets yesterday fretted once more over Greece as EU/IMF and Greek squabbling delay any full agreement materializing also it looks likely that Greece may delay payments to bond investors and if that was not enough for the nerve wracked inventors news was released saying that Greece's budget deficit may actually be 13.7% as opposed to the previously thought 12.7%. Finally it emerged that Moody's further downgraded the nation. The only positive development yesterday was the bridge loan announced to give Greece until a formal agreement is reached regarding the aid mechanism. To grasp the severity of the situation 2 year Greek Government bonds are trading at a whopping 925bp higher than their German counterparts. From the financial calendar yesterday we had Euro Zone PMI which beat estimates and helped the Euro maintain some value despite the chaos that was erupting in the Greek bond markets. EURUSD price action was between 1.3421 - 1.3200.
•  In the US we saw markets risk averse due to the Greek debacle and also because markets were worried ahead of US President Barrack Obama's speech on Financial regulation. Nothing serious enough to scare the markets was presented by Obama and equities closed the trading day 0.23% higher. From the financial calendar we saw a slight worsening in unemployment claims to 456K. The housing sector however showed some improvement as we saw existing home sales increase to 5.35 mio units. US 2 year treasury yields traded from 0.96 - 1.03% on the day and the USDJPY traded from 92.73 - 93.62.
•  In the UK we had the retail sales report showing a growth of 0.4% disappointing expectations of 0.7 for the month. Public Sector Net borrowing fell to 23.5 bln and CBI Industrial Orders expectations fell to -36. The GBPUSD price action yesterday was between 1.5472 - 1.5319.

 Currency to watch out for: EURUSD & USDJPY

• § The EURUSD pivot point is at 1.3300 with a preference to enter into Short positions at 1.3290
• § The USDJPY pivot point is at 93.10 with a preference to enter Long positions at 93.15

 Today's calendar and market movers:

• § UK GDP Q1 expected at 0.4%
• § EZ Industrial Orders for February expected at at 0.8%
• § US Durable Goods for March expected at 0.3%
• § US New home sales for March expected at 0.33mln

 Equity Markets:

 US equities closed positive yesterday with the DJIA and the SP500 closing 0.08% and 0.23% respectively.  The European bourses were negative yesterday with the FTSE closing -1.02% the DAX and the CAC closing down at -0.99% and -1.33%. The NIKKEI and the HSI at the time of writing is -0.33% and -0.77% respectively.