Will Greece See Another Credit Downgrade?

Spread betting and contracts for differences on various markets should consider the impact of continued turmoil in Greece. Yesterday, Greeks took the streets to protest austerity measures that the government wants to impose in an effort to get the financial situation under control.

However, if the Greeks are worried about their sovereign debt rating, they will have to go through with the measures. Moody's has warned that unless the Greek government goes through with its austerity measures, it is likely to see another credit downgrade.

Greece's credit rating was downgraded in December, due to the fiscal mess the country finds itself in. The European Union is scrambling to help Greece find a solution in order to protect other EU countries exposed to Greek debt risk. The people in Greece, though, are reluctant to see austerity measures, and are protesting the actions that would bring a measure of fiscal stability back to the government.

The result of this, so far, is to cause doubts about the ability of Europe to recovery from the recent recession in 2010, and is combining with other factors to send stocks lower, and encourage losses by the euro in forex trading.