Pound drops as S&P cuts UK outlook to negative

Author: Adam Button | Category: News
  • Outlook on the AAA-rating cut to negative from stable

The Queen is displeased.

Bids through 1.6100/1.6090 cleaned out with more at 1.6070/60 and stops below.

  • S&P: One-in-three chance of a downgrade if economy weakens beyond expectations
  • Debt-to-GDP expected to continue to rise
  • Could lower rating in the next 2 years if fiscal performance weakens
  • Sees real GDP avg 1.6% from 2013-2015

FItch and Moody’s already have a negative outlook on the UK.