Tag Archives: UK Credit rating
Fitch warning hit the pound yesterday but sterling has reversed the trend against the Euro & USD today
There were no data releases to note of in the UK yesterday but the pound was hit by the credit rating agency Fitch
issuing a stark warning to the UK economy. They have not YET cut our credit rating but did revise our outlook from stable to negative. This was due to the UK having very little room to manoeuvre to absorb further adverse economic
shocks.
These economic shocks could come from Europe as we are such close trading partners or the uncertainty about spiraling
national debt. If this happens it could mean a prolonged period of economic stagnation and a decline in the state of the pound.
With the pound marginally weakening yesterday there are still some fantastic buying opportunities that do arise
during the day. Infact today we have seen the pound bounce back up to 1.2051 as a high. We can sometimes see a high to low movement of over a cent and if we know what your requirement is we can be your eyes and ears on the market to help you maximize any potential gains that may occur.
Looking into next week the budget in the UK could go two ways for sterling so if you require buying or selling Euros you may be wise looking at securing your currency before the weekend arrives. Please email me at bma@currencies.co.uk with your requirement and telephone number and i will call you to discuss all the options that are available to you.
To give you a quick background, we are currency brokers and have been in the industry for years, this site was set up set up two years ago to give clients simple but informative information and now have 20,000 people a month stop by for information.
Last year we had thousands of people get in touch with us through the site, of which hundreds have already used us and we have saved them money over their high street bank or current broker, you can get in touch with us by clicking
here and setting up a free, no obligation trading facility to get a quote within minutes…. There is no harm in comparing rates even if you have used someone else for years – Just like buying car insurance you need to always shop
around. You can also email me directly bma@currencies.co.uk with any questions or queries.
I look forward to speaking with you.
GBP Exchange rates fall on credit rating concerns
GBP exchange rates had a mixed day yesterday, climbing by mid afternoon then falling away following Standard and Poor’s announcement that the UK’s AAA credit rating is still under threat.
The Euro has weakened considerably in 2010 following credit downgrades for Greece, Spain and Portugal. The concern for anyone holding sterling is that a downgrade here in the UK could see the pound weaken in a similar way.
At present I think a downgrade is unlikely, I personally feel it is simply a case of S&P reminding the financial markets and investors that the UK is not yet out of the woods. Although announced austerity measures should address the problems of national debt and budget deficit, we have yet to see the proof.
