Cable is trying to steady after the Fitch-induced slump, presently up at 1.6650 from a 1.6602 low. Earlier comments from Fitch’s co-head of global sovereign ratings David Riley had put sterling very much on the defensive; Mr Riley opining that the UK is most at risk of losing its AAA status among major economies, while Germany is the least.
The comments struck a nerve. Like someone saying hey look, there’s an 800 lb gorilla in the room. Certainly not like the market was unaware of the situation.
Funnily enough seems like only yesterday that Moody’s reiterated their stable outlook for UK’s sovereign debt. Go figure.
