- Downgrade reflects higher forecast for general government gross debt
- Risks to fiscal projections lie mainly to the downside on uncertain growth and eurozone crisis
- Economic output and forecasts are substantially weaker than previously
- French economy faces number of structural challenges
The drop in EUR/USD to 1.3000 could have been on a possible rumour of the downgrade earlier. The fact we only fell to 1.3032 would suggest the news was expected.
