Analysts at Morgan Stanley note that although Standard &Poor's worsened the outlook for US sovereign debt rating, it hasn’t so far affected the greenback’s dynamic. In the longer term, however, S&P's move will encourage the world’s nations to diversify their foreign exchange reserves away from dollars.

The specialists underline that that any concrete action of rating agencies may trigger faster reallocation away from the US currency.

In the near-term the market’s attention will be focused on the next week's FOMC meeting, though it’s useless to wait for the hints on of when the policy tightening is finally going to start.

The bank also says that dollar will remain a funding currency until the Fed begins quitting its extraordinarily loose monetary policy.

daily eurusd 12-23

Chart. Daily EUR/USD