23, April 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

Fitch announced on Friday that it downgraded the credit rating of the United Kingdom from AAA to AA +. Moody's already downgraded the UK in February, as the result only S&P supports the UK rating AAA.

Commenting this issue, the TD Securities team notes that the main factor of the lowering by Fitch was the weak UK economy, which led to an upward revision of the forecast for the UK budget deficit and public debt.

"This week economic data will support this idea as we expect a slight decline in GDP in Q1 (0.1%), which will force Britain to plunge into a triple dip recession," said TD.