"Update 12:30 GMT: Moody’s and Fitch have issued statements that they will not cut Spain’s credit rating, thus not following S&P. In the meantime, EUR/USD dropped to 1.3085 and is struggling at this point."

When I read this earlier this morning, I thought: "Hey the threat by Europe that it is going to set up its own Rating Agencies is having its effect".

But apparently, this does not suit the rumour circuit managers as yet. They first want to sell the remainder of their dollar positions and go long the Euro.