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Euro rate news: S&P May Cut France’s AAA Credit Rating

This week market volatility has stolen the limelight, with stability and predictability forced into its jagged shadow. The latest news to shake up the currency markets has emanated from Dow Jones Newswires, it suggests that Standard & Poor’s are set to downgrade several Eurozone country’s credit rating this evening. In December S&P placed the ratings of 15 Eurozone countries on negative standby, but since then the European Central Bank has acted to try and improve liquidity through low-interest 3-year loans. Credit freezes looked to have loosened yesterday following ECB President Mario Draghi’s speech in which he lauded the LTRO loans’ positive effect.

However any gains made by the Euro against the Pound and the US Dollar have been reversed this afternoon as many investors have decided to sell the Euro before markets close for the weekend – otherwise, if any credit downgrades do occur later this evening they would be unable to act until Monday morning.

The reports can still only be confirmed as rumours as of yet, but the prevailing opinion is that a group of Eurozone countries including France will receive either a one or two-notch downgrade late this evening. Germany is believed to be safe and the Netherlands has also announced that it is not on the list. If the reports are true then it will be a gloomy Friday the 13th for the French…

As of 15:59 GMT, the Pound to Euro Exchange Rate is 1.206, the Pound to US Dollar Exchange Rate is 1.528, and the Euro to US Dollar Exchange Rate is 1.266.