Will This Matter?

Jyske Bank has commentary today that there could be a little dust up in Latvia and Bulgaria as both countries need to stay close, economically, to the euro as both countries are on the path to EMU inclusion.

However, they appear to be struggling and a devaluation could be in the cards. S&P downgraded its outlook for Latvia from stable to negative, hence the big move on the LVL chart.

Both countries have current account deficits but
Bulgaria's is covered by FDI (per Jyske) but Latvia only covers 1/3 of its deficit with FDI (again per Jyske).

These places may seem like they are off the investment map but Iceland's problems, along with yen strength contributed big time to the correction last spring and how many people were following Iceland back then?

To be clear I don't know what will happen here or how important this will or won't be but it is worth staying in touch with.