Moody's Calls Europe's Bluff

In the past few months, Moody's has downgraded Greece's debt multiple times on concerns of fiscal insolvency. On Wednesday, Moody's announced a further downgrade of Greek sovereign debt, dropping Greece's rating from B1 to CAA1.

This downgrade from Moody's contrasts with statements made by France's finance minister Christine Lagarde, who described a Greek debt restructuring as being "off the table." Lagarde is doubly important, as she is widely considered to be the leading candidate to succeed Dominique Strauss-Kahn as the next director of the IMF.

Moody's is not buying it, citing increased risk of debt restructuring in their decision to downgrade, according to ABC news.

Does Moody's report trump the rhetoric of European government officials? If it does, then traders might believe that bearish days lie ahead for the euro currency.

Traders looking to go short the euro might consider a position in ProShares UltraShort Euro (NYSE: EUO). EUO attempts to return a value inversely correlated to the strength of the euro and may rally if the euro is depreciating against other currencies.