This morning we have heard from the credit ratings agency Moody’s who have put the UK, France and Austria all on “negative outlook” which means there is a 30% chance the UK could lose its triple A rating within the next 18 months. This news only goes to confirm what we already knew – the UK economy is under severe pressure and as Ed Balls the shadow chancellor put it; this is a “serious warning.” Any downgrade of an economy can result in increased costs for borrowing funds and a reduction in investors confidence which means money can flood out of a currency therefore weakening it significantly, therefore todays announcement is bad news for Sterling exchange rates. Of course in Europe the news is much the same and so the pressure on finance ministers to resolve not only the Greek debt crisis but also the rising debt levels across the whole economy is more important than ever now.
If you need to transfer money abroad then it is important to speak to one of our currency brokers today who can explain how this announcement could effect your transfer and the options available to you. Call us today on 0800 328 5884 or email email@example.com