OctaFX | OctaFX Forex Broker
Open trading account

Forex: GBP/USD falls below 1.5200 after UK downgrading

The GBP/USD closed Friday below the 1.5200 frontier and around daily lows at 1.5160 following the Moody's decision to cut Britain government rating to Aa1 from Aaa. The agency has put now the outlook as stable.

Moody's considers that the "continuing weakness in the UK's medium-term growth outlook with a period of sluggish growth," will be extended into the second half of the decade. The agency also downgraded the Bank of England rate to Aa1 from Aaa.

The GBP/USD declined around 100 pips in just a few minutes from 1.5255 to break down the 1.5200 level and reach intra-day lows at 1.5160. The GBP/JPY collapsed from 142.50 to 141.50 in its way to 1-month lows around 141.30.

Moody's downgrades UK rating to Aa1 from AAA

Moody's Investors Service has removed UK from its AAA status today after downgrading the UK government bond rating to Aa1 from Aaa. The outlook on the ratings is now stable.
Read more Previous

Forex: EUR/USD closes quiet; Pound collapses on UK's downgrade

Guess which currency with trade a gap on Monday's Asian opening? When market was wrapping up Friday's session, Moody's published its decision to remove the Britain AAA status and cut both Government and BoE ratings by one notch to Aa1 from Aaa. GBP/USD collapsed around 100 pips in minutes, just ahead Friday's close.
Read more Next
Start livechat