The euro fell to the lowest level since July 2010 against the dollar as investor concern about Spain’s ability to recapitalize troubled banks increased, boosting bets the union’s debt crisis is worsening.

The 17-nation currency dropped below $1.25 for the second time this month after Egan-Jones Ratings Co. reduced its credit rating for Spain to B from Bb-. The euro fell against most of its major counterparts as Spanish officials debated how to fund a recapitalization of the Bankia group.

The yen gained against the majority of its most-traded peers amid increased demand for haven assets.

The pound approached a three-and-a-half-year high against the euro amid the monetary union turmoil. It strengthened as much as 0.2 percent to 79.83 pence per euro after reaching 79.51 pence on May 16, the strongest level since November 2008. Sterling has appreciated 4.1 percent this year.

Euro broke through $ 1.2500 level, accelerating decline rates, and noting with a minimum value in June 2010 at around $ 1.2460.

The agency Egan-Jones today downgraded the sovereign debt rating of Spain from BB-to B forecast remains negative.

As the agency commented, "Spain will inevitably face the need to provide financial support to the national banking sector and the weakest provinces. Assets of the two largest banks in the country exceeds the size of its GDP. We downgrade our rating to" B "and we carefully monitor new requests for assistance from the banks. "

EUR/USD $1.2500, $1.2550, $1.2625, $1.2630, $1.2650, $1.2700

USD/JPY Y79.00, Y79.25, Y79.30, Y80.00

EUR/GBP stg0.8000

AUD/USD $0.9860, $0.9865, $0.9875, $0.9900, $0.9950

USD/CAD C$1.0230

EUR/USD

Offers $1.2640/55, $1.2625, $1.2600, $1.2580, $1.2540/50

Bids $1.2510/00, $1.2490/80, $1.2450 

GBP/USD

Offers $1.5850, $1.5800, $1.5770, $1.5750, $1.5720/30

Bids $1.5650, $1.5610/00

Resistance 3: Y80.55 (May 3 and 16 highs)
Resistance 2: Y80.15 (May 22 high)
Resistance 1: Y79.80 (resistance line from Apr 2, May 25 high)
Current price: Y79.52
Support 1: Y79.40 (support line from May 18)
Support 2: Y79.20 (May 23 low)
Support 3: Y79.00 (May 18 low)

Resistance 3: Chf0.9780 (high of 2011)

Resistance 2: Chf0.9700 (psychological level)

Resistance 1: Chf0.9600 (area of May 24-25 high, high of January and session high)

Current price: Chf0.9579

Support 1: Chf0.9560 (session low, МА (100) for Н1)

Support 2: Chf0.9530 (area of May 24-28 lows)

Support 3: Chf0.9500 (МА (200) for Н1)

Resistance 3 : $1.5840 (area of May 18-22 highs)

Resistance 2 : $1.5740 (МА (200) for Н1)

Resistance 1 : $1.5720 (area of May 28-29 high)

Current price: $1.5686

Support 1 : $1.5630 (area of May 24-25 lows)

Support 2 : $1.5600 (psychological level, low of March)

Support 3 : $1.5520 (support line from May’2010)

Resistance 3 : $1.2640 (МА (200) for Н1, resistance line from May 1)
Resistance 2 : $1.2620 (May 28 high)
Resistance 1 : $1.2575 (session high)
Current price: $1.2529
Support 1 : $1.2500 (May 25 low)
Support 2 : $1.2400 (psychological level)
Support 3 : $1.2300 (psychological level)

EUR/USD $1.2500, $1.2550, $1.2625, $1.2630, $1.2650, $1.2700

USD/JPY Y79.00, Y79.25, Y79.30, Y80.00

EUR/GBP stg0.8000

AUD/USD $0.9860, $0.9865, $0.9875, $0.9900, $0.9950

USD/CAD C$1.0230

01:00 Australia HIA New Home Sales, m/m April -9.4% 6.9%

Yesterday euro retreated from highs against the dollar amid weak trading in the absence of any publication statisticsi because bank holidays in Europe and the United States.

Earlier, investor optimism was associated with the news that, according to opinion polls, the majority of the population of Greece supports the center-right party "New Democracy", which stands for the continuation of the country's obligations to international lenders and observance of austerity measures. According to Greek analytical agency Kapa Research SA, for the party "New Democracy" may vote by 5.7% more voters than in the radical left SYRIZA block, which calls for the immediate rejection of the agreements with creditors. In addition, investors pleased with reports that the National Development and Reform Commission of China approved three major construction project, which is an implementation of government's intention to support the growth of Chinese economy.

The British pound traded cautiously against the dollar due to the fact that the inflation report, indicating a greater propensity for soft policies than expected, low inflation and low retail sales data suggest that the obstacles to further monetary easing in the UK may be lower than previously thought.

Resistance 3: Y80.15 (May 22 high)

Resistance 2: Y79.80 (May 25 high)

Resistance 1: Y79.65 (session high)

The current price: Y79.41

Support 1: Y79.20/30 (area of May 23-28 low)

Support 2: Y79.00 (May 18-21 low)

Support 3: Y78.70 (Feb 15 low)

Resistance 3: Chf0.9740 (Feb 16 high of 2011)

Resistance 2: Chf0.9655 (Feb 9 high of 2011)

Resistance 1: Chf0.9610 (May 25 high)

The current price: Chf0.9587

Support 1: Chf0.9575 (session low)

Support 2: Chf0.9525/30 (area of May 24-28 lows)

Support 3: Chf0.9465 (May 23 low)

Resistance 3 : $1.5850 (May 22 high)

Resistance 2 : $1.5775 (May 23 high)

Resistance 1 : $1.5715/25 (area of May 24-28 highs)

The current price: $1.5672

Support 1 : $1.5655 (session low)

Support 2 : $1.5625 (May 25 low)

Support 3 : $1.5600 (psychological level)

Resistance 3 : $1.2685 (May 23 high)

Resistance 2 : $1.2620/25 (area of May 24-28 highs)

Resistance 1 : $1.2550 (session high)

The current price: $1.2533

Support 1 : $1.2495 (May 25 low)

Support 2 : $1.2455 (111.8% FIBO $1.2824-$1.2495)

Support 3 : $1.2420 (123.6% FIBO $1.2824-$1.2495)

(pare/closed(00:00 GMT +02:00)/change, %)

EUR/USD $1,2540 +0,20%

GBP/USD $1,5677 +0,08%

USD/CHF Chf0,9582 -0,13%

USD/JPY Y79,47 -0,25%

EUR/JPY Y99,65 -0,07%

GBP/JPY Y124,57 -0,18%

AUD/USD $0,9852 +0,96%

NZD/USD $0,7615 +1,04%

USD/CAD C$1,0238 -0,52%

01:00 Australia HIA New Home Sales, m/m April -9.4%

06:00 Switzerland UBS Consumption Indicator April 1.22

10:00 United Kingdom CBI retail sales volume balance May -6 -7

12:00 Germany CPI, m/m (preliminary) May +0.2% 0.0%

12:00 Germany CPI, y/y (preliminary) May +2.1% +2.1%

13:00 U.S. S&P/Case-Shiller Home Price Indices, y/y March -3.5% -2.7%

14:00 U.S. Consumer confidence May 69.2 69.6

22:45 New Zealand Building Permits, m/m April +19.8% -10.0%

23:15 Japan Manufacturing PMI May 50.7