Early in another Merch week, GBPUSD is slightly falling but the prospects are rather murky.
On Monday, the British Pound is losing a positive momentum against the USD. The current quote for the instrument is 1.2425.
The United Kingdom is still quarantined due to the coronavirus pandemic and, of course, it influences all economic processes in the country.
In view of the above said, it’s no surprise that the Fitch rating agency downgraded the UK to “AA–“ with the previous value being “AA”. Forecasts on the British rating are negative, which is quite logical.
In the comments, Fitch said that it was the Covid-19 outbreak that ruined the rating for the United Kingdom. At the same time, the updated version of the rating is a recognition of the economic slump in the country due to several factors, including easing of taxation and budget policies.,
The British economy is pressured by the high uncertainty of trade relations between London and the European Union, budget deficit, and an increase in the national debt. Apart from this, the Brexit procedure is on the back burner right now, because representatives of both parties were diagnosed with the Covid-19. The higher the uncertainty, the worse for the Pound. At the moment, it is the strongest catalyst.
Orgin: RoboForex
