Fitch Ratings Agency cut the credit ratings of Greece one level on concerns the country will not be able to gather the political support needed to sustain its membership in the eurozone. Fitch Ratings Agency said “The strong showing of anti-austerity parties in the May 6 parliamentary elections and subsequent failure to form a government underscores the lack of public and political support for the country’s bailout from the European Union and International Monetary Fund” said in its statement. The next round of national elections will take place on June 17.

EUR/USD also fell as rising borrowing costs in Spain spurred speculation the crisis is spreading from Greece. Spain auctioned €2.49 billion of debt at a yield of 4.87%. Same type of notes was sold at a yield of 4.87% two weeks ago. Also Spanish 10-year yields climbed to 6.30%. Meanwhile, Moody’s Investors Service cut the long-term debt and deposit ratings of 16 Spanish banks, saying the government’s ability to prop up banks had weakened. If EU policy makers do not step in, the costs will be even higher.

The Asian stock markets opened lower today. NIKKEI started the day at 8,727.58, previous close was 8,876.59. HANG SENG opened at 18,787.00, previous close was 19,200.90. Analysts say that although Japanese stocks are reasonably priced at the moment, fears about Europe are intensifying, and the strong yen won’t help matters. General Manager at Mitsubishi UFJ, Norihiro Fujito said “The stocks everyone bought in March are now getting blasted, and foreign investors have to keep selling to maintain their margins. It’s a negative spiral and makes the market very weak”.

EUR/USD is trading at 1.2679 by the time of typing and for today resistances are located at 1.2741 and 1.2786. Support levels are 1.2659 and 1.2621.

GBP/USD is at 1.5763. Resistance levels are located at 1.5830 and 1.5888. Supports are located at 1.5742 and 1.5700.

USD/CHF is trading at 0.9470 by the time of typing and for today resistances are located at 0.9484 and 0.9550. Support levels are 0.9423 and 0.9390.

AUD/USD is trading at 0.9848. Resistances are located at 0.9900 and 0.9938. Support levels are 0.9829 and 0.9777.

The economic calendar is light today. German PPI data will be released at 07:00 GMT. Statistics Canada will release Core CPI numbers at 13:30 GMT.