S&P lowers the UK and Bank of England outlook

Cable takes a hit to 1.5537 from 1.5590

S&P says;

  • Possible UK departure from the EU raises questions about financing of the economies large twin deficits and high short-term debt
  • Important risks to the UK's longer term economic prospects should it leave the EU
  • Outlook on UK reflects opinion that there is a 1 in 3 chance probability of a downgrade over next two years
  • Results of election could complicate post referendum scenario in Scotland should UK decide to leave EU
  • Sees high external deficits as vulnerable to the economy
  • Affirmation of AAA rating reflects opinion that the UK continues to exhibit high labour and product market flexibility and a wealthy diversified economy

If there was any bullishness being built up for a decent report from the ratings mob it's been wiped out now. Fitch are still to report on the UK too

One minute pound traders are having fun and the next..

Who'd be a cable trader?