The pound sterling suffered massive sales this morning, rumor of lowering rating of England.

[RTFX-Trading]

The pound sterling suffered massive sales this morning, falling to 1.4050 against the greenback at 127.45 against the yen, 0.9240 against the euro.

The euro was already under pressure from vendors yesterday, following the announcement of the ratings agency Standard & Poor's reduced its rating of the sovereign debt of Spain from AAA to AA +, citing the weakness of Spanish economic growth, deteriorating current account deficits and public accounts.

A rumor circulated that the Standard & Poor's could lower the rating of England, hence the massive sales this morning.

[Holmer Malthus]

Hi Nicolas,

Standard & Poor´s shouldn’t reduce the England Rating, because it will give worst expectations from all Europe. The pounds will bad days, if it happens.

Holmer Malthus
New York University