Moody’s expects to cut US rating without deal to lower debt/GDP ratio
- Budget negotiations likely to determine AAA rating and outlook
- If budget talks do not produce downward trend in debt-to-GDP ratio, rating likely to be lowered to AA1
- Assumes “relatively orderly” process for increasing debt limit
- The full Moody’s statement is here
For whoever wins the election, getting the votes from the public will be the easy part. Getting the votes in Congress will be painful.
All of this of course creates market opportunities for traders using both fundamental analysis and trading in the major USD currency pairs, and a number of brokers have recently improved their spreads enabling you to take advantage of this, see the online Forex trading site AVATrade as just one example.