Moody's downgrades UK to Aa1 from Aaa; outlook now stable | Forex Factory

  • Moody's downgrades UK to Aa1 from Aaa; outlook now stable

    From moodys.com

    Moody's Investors Service has today downgraded the domestic- and foreign-currency government bond ratings of the United Kingdom by one notch to Aa1 from Aaa. The outlook on the ratings is now stable. The key interrelated drivers of today's action are: 1. The continuing weakness in the UK's medium-term growth outlook, with a period of sluggish growth which Moody's now expects will extend into the second half of the decade; 2. The challenges that subdued medium-term growth prospects pose to the government's fiscal consolidation programme, which will now extend well into the next parliament; 3. And, as a consequence of ... (full story)

Comment Options
Maso
Feb 23, 2013 9:52am
Permalink
Quoting Celente
London Market was already closed when the News was released, we might get an interesting day Monday at the London open
For me, nothing expected happening when London opens. It's obvious and this downgrading was quiet expected.
Reply
BullsVsBears
Feb 22, 2013 10:04pm
Permalink
Quoting Shelika
Damn i looked away from computer just for a while and now losing almost 1k because of this news. They really picked great timing to announce. Friday and almost closing time..Damn...
I was long GBP also... I was wondering what caused the significant drop before closing time. I think we're ok.. Hopefully my stop wasn't hit and we get a nice bounce Monday
Reply
freak2star
Feb 22, 2013 7:41pm
Permalink
Quoting erod84
It means welcome 1.4xxx for gbp/usd. Weekly closing is below a major support/trendline from 2009.
totally agree with you.
is also likely to closeFebruary below important monthly support of 1.5290
will be going down...
Reply
iqyu5an
Feb 22, 2013 7:41pm
Permalink
moody just gave the discounted tickets before boarding......... take it or not ?
Reply
klinckphilip
Feb 23, 2013 6:19am
Permalink
Quoting Guest
It should not have taken this long. This should be the second down grade of Britain.
Why? They have a printing press. Who thinks they arent going to pay. They will just print more and more until every bill is paid and will look like Zimbabwe. I think Robert Mugabe is giving Brittan and the US financial advice.
Reply
Ill-b-back
Feb 24, 2013 4:19am
Permalink
we stopped and bounced at an important level and a 50 fib, not seen since June 2010
Let's see the length of this monthly tail.

Moodys cut already priced in.
Don't be surprised by a bounce.
Reply
michaelpelly
Feb 22, 2013 11:08pm
Permalink
Wow, that was a surprise - at least 1.46 seems likely now.
Reply
erod84
Feb 22, 2013 3:34pm
Permalink
Thanks moody's. Hit my TP before the weekend
Reply
erod84
Feb 22, 2013 3:55pm
Permalink
Quoting Guest
what dose it means? will the weakness of gbp continue?
It means welcome 1.4xxx for gbp/usd. Weekly closing is below a major support/trendline from 2009.
Reply
Subdude
Feb 22, 2013 4:26pm
Permalink
How does devaluing the currency help you "contain" inflation? Lots of geniuses on this board.

IMHO, this downgrade is as meaningless as its timing suspicious. Typical Friday knee jerk reaction.
Reply
Shelika
Feb 23, 2013 4:28am
Permalink
Quoting BullsVsBears
I was long GBP also... I was wondering what caused the significant drop before closing time. I think we're ok.. Hopefully my stop wasn't hit and we get a nice bounce Monday
I got bad feeling that it will gap down at least 20 pips on monday open and continue head south for 100 pips before a little bounce
Reply
spekitox
Feb 23, 2013 8:15am
Permalink
Exotic places are generally not AAA. So what's the big deal. The UK ain't what it used to be anymore, why would its credit rating be.
Reply
Maso
Feb 22, 2013 3:54pm
Permalink
The next fall is for EURO.
Reply
richhand
Feb 22, 2013 4:25pm
Permalink
the key term is "stable"
Reply
Emanuel
Feb 22, 2013 4:13pm
Permalink
I cut my NZD/JPY LONG losses, my TPs from shorting the GBP/JPY were honored.

GBP/JPY to 133.448. GBP/USD 1.35

Carney will destroy the pound in order to boost FTSE and contain inflation.
Reply
Celente
Feb 23, 2013 6:34am
Permalink
London Market was already closed when the News was released, we might get an interesting day Monday at the London open
Reply
May
Feb 22, 2013 4:49pm
Permalink
It means they try to make priced worst before the turn bull for GBP by GDP and PMI datas.
Quoting Guest
what dose it means? will the weakness of gbp continue?
Reply
Spreadbetter
Feb 22, 2013 5:01pm
Permalink
Sympathy, two things; I hope you have stops in place on your sterling bets and that you have a plan of action in place come Sunday evening.

Quoting Shelika
Damn i looked away from computer just for a while and now losing almost 1k because of this news. They really picked great timing to announce. Friday and almost closing time..Damn...
Reply
ogrimcc
Feb 22, 2013 5:17pm
Permalink
i ask why would anybody go against the treand when it has been below the 50 and 200 for days. when they have been talking about this for the last two weeks on bloomberg and cnbc i ask because i want to know if there is something i don't thanks
Reply
Spreadbetter
Feb 23, 2013 2:15pm — Edited
Permalink
There was still a market in fx after London closed and there will be a market Sunday evening before London opens Monday morning. Plenty of traders got tw@tted late Friday and will have to devise a strat ( or stick to their plan ) between now and late Sunday evening.

Quoting Celente
London Market was already closed when the News was released, we might get an interesting day Monday at the London open
Reply
Shelika
Feb 22, 2013 4:49pm
Permalink
Damn i looked away from computer just for a while and now losing almost 1k because of this news. They really picked great timing to announce. Friday and almost closing time..Damn...
Reply
bondibeach
Feb 22, 2013 10:47pm
Permalink
There will be a stop loss spike somewhere below 1,51, then 100 pip gap
Reply
Tal1983
Feb 22, 2013 4:59pm
Permalink
Now what about GBP/NZD?
Reply
danbo19
Feb 22, 2013 3:41pm
Permalink
TP Before the weekend as well. Beautiful.
Reply
dk58198
Feb 23, 2013 5:13am
Permalink
I am going to take a huge loss when the market opens wow that's is a big blow
Reply
circochas
Feb 24, 2013 4:16pm
Permalink
Dead cat bounce anyone ?
Reply
Trader#23FE
Feb 22, 2013 3:46pm
Permalink
what dose it means? will the weakness of gbp continue?
Reply
Trader#B267
Feb 22, 2013 3:56pm
Permalink
It should not have taken this long. This should be the second down grade of Britain.
Reply
Trader#DC59
Feb 22, 2013 4:13pm
Permalink
Big big big news. This is equivalent to US downgrade. WOOOW !
Reply
Trader#0C60
Feb 22, 2013 4:15pm
Permalink
HA !! I exited my nonperforming swing longs in disgust just hour ealier for loss of 0.12 risk on trade ! Else would be full loss.

Now I feel much better by following my plan
Reply
Trader#9E1D
Feb 22, 2013 7:23pm
Permalink
pound has been moving down for weeks....the charts have been singing the same song for a while.....guess Moodys made that last high note :-)
Reply
Trader#ACF7
Feb 23, 2013 12:42pm
Permalink
wow, i was long GBP cut my losses to 18 pips, closed the trade 3 mins before closing time, now i feel i can sleep without dreaming about falling into deep chasm
Reply
Trader#F293
Feb 24, 2013 1:53pm
Permalink
GBP/USD price asat this moment @ 1.5095
Reply
  • Story Stats