Sterling down on credit ratings

The Pound fell back from 1-month highs against the Euro today, as Moody’s and Fitch both said that Britain may lose its triple-A credit rating.

Credit ratings are important for a currency, since they influence inward investment and therefore demand for the local currency.

Tomorrow there is no major data due out in the UK but with Wednesday’s budget looming, we are sure to see some volatility for commercial exchange rates in the coming days.