RTRS: Euro falls to session lows vs dollar below $1.27
July 14 (Reuters) - The euro extended losses to a session low on Wednesday after unexpectedly weak U.S. retail sales data drove stock futures lower and talk of a possible debt downgrade for Spain weakened investor risk appetite.
The euro slipped to $1.2683 EUR=, down 0.2 percent on the day, after hitting a two-month high around $1.2740 on Tuesday.
Traders said talk in the market that Spain may face a downgrade of its credit rating was weighing on the euro, as was a turn lower in U.S. stock futures. On Tuesday, Moody's cut Portugal's debt rating by two notches, heightening worries about debt levels in several euro zone countries.
"Talk of a possible Spanish downgrade has hurt the euro, but we also saw it drift lower after retail sales disappointed and stock futures started to fall," said Brian Dolan, chief strategist at Forex.com in Bedminster, New Jersey. "Risk is being taken off the table right now." (Reporting by Steven C. Johnson; Editing by James Dalgleish)
