After several consecutive sessions of gains versus other major currencies, the pound is recording losses during the early part of Monday’s session, having traded at $1.2316, almost 0.9% down against the dollar. The weakness of sterling is a result of the United Kingdom having its credit rating downgraded from AA to AA- by Fitch on Friday. This decision is of course related to the massive undertaking in spending the British government has committed to in order to mitigate the damage from the coronavirus fallout. When combined with that other old chestnut of the UK’s post-Brexit relationship with the EU and the country’s fiscal spending spree is likely to keep the Pound under pressure.
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