Asked by Reuters if they have any comment on the US’s AAA rating S&P refers to a statement affirming the debt made in January. In that statement they did note that fiscal risk had increased notably but they saw the deterioration as temporary.
The trouble is that the market fears the fiscal deterioration will not, in fact, be temporary. Big-ticket government programs are being added at a very fast clip despite the economic downturn.
EUR/USD has dipped back below 1.3900 from highs at 1.3923. USD/JPY is near resistance around 94.25/30 after a dip to 93.96.
