A political bee sting, the Moody's downgrade of the U.K. has Treasury Chancellor Osborne...

A political bee sting, the Moody's downgrade of the U.K. has Treasury Chancellor Osborne pledging a redoubling of government deficit-cutting efforts. Those interested in a currency punt might have a look at buying pounds (FXB). Already fallen off a cliff in 2013, the downgrade sent sterling hurtling even lower in thin late trading. If this ratings action is as meaningless as most other sovereign downgrades, a sharp bounce may lie ahead.
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Comments (6)
  • Herr Hansa
    , contributor
    Comments (3130) | Send Message
    In a way it is a step that was expected to need to happen prior to any consideration of a downgrade of US credit worthiness. The idea was that as long as the UK maintained a AAA rating, then the US credit rating would not change. Basically this is one barrier down that some analysts did not expect.
    23 Feb 2013, 01:24 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4911) | Send Message
    A lot of countries are pursuing "beggar thy neighbor" policies so it is a race to the bottom. Lot's of downgrades coming likely.
    23 Feb 2013, 01:37 PM Reply Like
  • schatzl
    , contributor
    Comments (391) | Send Message
    Tough the downgrade has the "positive" consequence of possibly improving competitiveness, I doubt it is as such a planned strategy but more of a facing up to the decay of economic fundamentals across the developed world.
    23 Feb 2013, 02:17 PM Reply Like
  • David Atherton
    , contributor
    Comments (33) | Send Message
    That's a contrarian comment! GBP is pushed down with this AA1 rating, USD is pushed up by the FOMC minutes (no more QE). I'll stick with shorting GBP/USD for now, thanks. British financial press is full on stories about Soros and co saying GBP is the new JPY (ie great short)
    23 Feb 2013, 02:45 PM Reply Like
  • Rinascimento
    , contributor
    Comments (1591) | Send Message


    Another chance for Soros to make $1B again in a day with GBP like in the 90s.....it must be true that history repeats itself...this guy is lucky..same place and way but different times
    23 Feb 2013, 03:21 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3121) | Send Message
    I'm still short GBPUSD, though we're sitting slightly above the low and it might be good to book an interim profit and reload. Watch for action tomorrow night.
    23 Feb 2013, 05:04 PM Reply Like
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