Credit Rating agency Standard & Poor’s announced this morning that it was cutting Spain’s AAA long-term sovereign rating to AA+. The euro fell to a session low of $1.3217 from around $1.3278 after the news was announced, while the yield spread between 10 year Spanish bonds and German Bunds held steady around 114 basis points following the downgrade after rising earlier to a record 122.

Fuller background on all this can be found here.