By CountingPips.com
The euro has traded higher against the U.S. dollar in forex trading despite touching a one-year low point earlier today. The euro-dollar pair (EUR/USD) has ascended above the 1.3200 exchange rate to show a current gain of approximately 30 pips on the day after dropping yesterday by over 200 pips. The EUR/USD rose to an intraday high of 1.3266 early in trading before falling to 1.3114 and marking the lowest trading level since April 28th, 2009. The euro has managed to pare that downtrend and has 
risen to currently trading near the 1.3220 level.
In today’s news, we learned that Spain had its debt rating downgraded to AA by the ratings agency Standard & Poor’s. This is only one day after similar downgrades on debts of Greece and Portugal and has heightened speculation the Greece crisis may be spreading.
Out of the U.S., the Federal Reserve held its interest rate at 0.25 percent as widely expected. The statement said that “economic activity has continued to strengthen and that the labor market is beginning to improve.” The statement also highlighted many of the aspects constraining the economy such as high unemployment, tight credit and the troubled housing market. The Fed did not change course from saying that the rate would stay at “exceptionally low levels” for an “an extended period” and once again passed on giving any signal on when a change in policy may come. Fed member Thomas M. Hoenig dissented from the committee for the third straight meeting as he objected to the expectations of low levels of interest rates going forward which may cause “imbalances” in the long-term.
Tomorrow’s economic schedule includes German employment results, Euro-Zone Industrial Confidence, the Chicago Fed national activity index and the U.S. weekly jobless claims.
EUR/USD Chart – The Euro today rebounding slightly against the US dollar on the 1-hour chart after touching over a one-year low earlier today. The pair fell over 200 pips yesterday after Greece and Portugal’s debt ratings were downgraded and while Goldman Sachs executives were grilled in front of Congress. Spain’s debt was also downgraded by the S&P today but didn’t hold the euro down for too long as the EUR/USD has popped its head back over 1.3200.
