The Great Britain pound posted the impressive gains today after Fitch Ratings said that the UK should keep its top credit rating and as the talks about an increase of the interest rates renewed.
Fitch said that the âprincipal riskâ to Britain’s credit rating is the slower than previously estimated economic recovery, yet it’s not “sufficiently material” to warrant a downgrade of the nation’s AAA rating. Fitch analyst Maria
The strong budgetary consolidation effort and declining fiscal risks arising from the U.K. financial sector support the âstable outlookâ on the AAA ratings.
The good news spurred the new round of speculation about possible increase of the interest rates. Some analysts warn that traders became overly optimistic and the sterling has gone too far and will slump heavily. On the other hand, the sterling has potential to go even higher if the minutes of the central bank released next week will show that an increasing number of the policy makers voting for rates increase.
GBP/USD advanced from 1.6068 to 1.6171 today as of 22:36 GMT. GBP/JPY went up from 130.86 to 132.18.
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