The euro traded lower against other major currencies on Monday, after credit rating agency Moody’s downgraded France’s sovereign credit rating from Aaa to Aa1.
In the report, Moody’s said France’s fiscal outlook was uncertain, and that the country’s labor, goods and service markets were rigid. Moody’s added that France’s resilience to future euro shocks was diminishing, and that France had an uncertain economic outlook.
On the other hand, Moody’s said France still has a large and diverse economy with significant credit strengths.
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