The Pound has fallen further this morning as the financial markets react to the loss of the UK’s AAA credit rating. Moody’s cut the UK’s credit rating from AAA to AA1 citing ‘challenges that subdued medium-term growth prospects pose to the government’s fiscal consolidation programme, which will now extend well into the next parliament’. This is the first such credit rating downgrade since 1978. The Pound is now trading at its lowest level against the Euro since October 2011 and the lowest level against the US Dollar since July 2010. The Pound has depreciated 6% this year and further falls in Sterling are possible.
Please do not hesitate to contact the dealing desk on 01695 581 669 to discuss your upcoming currency requirements. If you are concerned about adverse currency fluctuations you can eliminate this uncertainty by using a Forward Contract to secure an exchange rate today for settlement at a later date.