Euro drops back on rumours of French downgrade – USD moves opposite

Today’s news, which was due to be dominated by economic data on both sides of the atlantic, has now focussed on a rumoured downgrade of several Eurozone countries’ credit ratings by S&P.

France could see its credit rating hit along with many other Eurozone countries. The rumours have caused Euro weakness, improving the exchange rate for buying Euros by over 1c this afternoon, while the USD has moved in the opposite direction giving us the lowest GBP-USD rate since July 2010.