(RTTNews) - In early European deals on Monday, the euro slipped to multi-day lows against the yen and the franc as traders sold the single currency in response to Moody's three notch downgrade of Greece. The euro also eased against the dollar and the pound amid Greece downgrade but rebounded shortly. Moody's Investors Service lowered Greece's local and foreign-currency bond ratings to 'Ca' from 'Caa1', citing likelihood of substantial losses to private creditors on their government debt holdings. It has assigned a developing outlook to the ratings. The rating's developing outlook reflects the current uncertainty about the exact market value of the securities creditors will receive in the exchange. Worries over the U.S. economy grew after U.S. lawmakers failed to agree on raising the nation's $14.3 trillion debt ceiling, which is needed to avert the U.S.'s first default in history. With time ticking down until the August 2 deadline to increase the nation's borrowing authority, President Barack Obama on Friday argued that both political parties bore some responsibility for the nation's spiraling debt and deficits. He warned that the U.S. defaulting on its debt would result in a minimum of higher interest rates for virtually every American with any kind of loan, which he called an indirect tax. After hitting a low of 1.4331 against the dollar at 3:20 am ET, the euro gained. As of now, the euro-dollar pair is worth 1.4385, compared to Friday's close of 1.4364. The near term resistance for the euro is seen at 1.442. The euro that fell to 0.8803 against the pound at 3:00 am ET rose thereafter. The euro-pound pair that closed last week's trading at 0.8814 is currently worth 0.8834 with 0.885 seen as the next upside target level. The euro declined to a 6-day low of 1.1558 against the Swiss franc at 3:20 am ET. Since then, the euro-franc pair has been moving sideways and if the euro falls further, it will break the 1.150 level. The pair ended last week's trading at 1.1764. The euro dropped to 112.14 against the yen at 3:45 am ET, compared to an early Asian session high of 113.03. The euro-yen pair is presently worth 112.30 and the next downside target level for the European currency is seen at 111.8. The pair was quoted at 112.74 Friday's close. There are no major economic reports due to be released in the upcoming hours.

Source