Daily Recap – Moody’s Spooks the Pound

Sterling was sharply lower today after a Moody’s representative was quoted when speaking on the UK’s rating saying that even though UK’s AA rating outlook is stable, “slower growth combined with weaker-than-expected fiscal consolidation efforts could cause the UK’s debt metrics to deteriorate to a point where we would reconsider our stance.” GBP/USD hit a low of 1.6347, however, the pair has since bounced back and is now pushing toward 1.64.

Risk aversion is back and that means the EUR/USD is under pressure. The pair is flirting with its previous low of 1.4568.

The chart of the day comes from the NZD/USD which was boosted by positive news and a hint of a potential rate hike from the RBNZ for the Kiwi.

NZDUSD spike

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