Moody’s assessed a negative outlook today after cutting, as they anticipated, the ratings for Spain, Portugal and Italy, to A1, Ba2, and A2, respectively, with also, a negative outlook. Other countries were also downgraded, and this continuous menace has impacted UK, issuing a warning to the financial market of this country. The uncertainty regarding the fiscal consolidation, and the macro economical conjuncture of the Euro area, were the triggers to this action.

The exchange rate GBP/USD changed to 1, 5686. On the other hand, EUR/ USD fell quickly to 1, 3128, and the AUD/USD is in the level of 1, 0664. These are the events that were influenced by the previous news about the new position of the rating agency Moody’s. This will have also some effect into the investors’ minds, continuing to lower their expectations in the European market, and watching UK being under observation, decreases their confidence, and subsequently, their willingness to put or leave their money in these markets.......Read More