Pound drops as S&P cuts UK outlook to negative

  • Outlook on the AAA-rating cut to negative from stable

The Queen is displeased.

Bids through 1.6100/1.6090 cleaned out with more at 1.6070/60 and stops below.

  • S&P: One-in-three chance of a downgrade if economy weakens beyond expectations
  • Debt-to-GDP expected to continue to rise
  • Could lower rating in the next 2 years if fiscal performance weakens
  • Sees real GDP avg 1.6% from 2013-2015

FItch and Moody’s already have a negative outlook on the UK.

Author: Adam Button

Adam Button is the managing editor of ForexLive™. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes there's an edge in knowing every tidbit of news. He was formerly the head of the markets team at the Canadian Economic Press and is a graduate of Ryerson University. Adam lives in Montreal, follow him on Twitter: @FX_Button.

4 Comments

  1. Surely the caption should read ‘Look at all these countries we used to own’. or possibly even ‘we are not amused’.

  2. Hilarious caption :) Thanks Adam! You guys are brilliant.

  3. Don’t be fooled, the Queen is second to the Rothchilds in wealth…and the Rothchilds are worth over 400 trillion dollars. You do the math. Her investment company “crown corporations” books are sealed to the public and have been for years.

  4. @ Negringo.. Trillion? Must be a typo. They are worth in the $350 billion range.

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