Standard & Poor's downgraded Spain credit rating by two notches to BBB minus. Their decision may ultimately prove beneficial to the Euro if it provokes Spanish Prime Minister, Mariano Rajoy to request an international bailout package. If the credit rating downgrade sends Spanish bond yields higher, then the inevitable plea for assistance may be brought forwards; at the moment the general consensus is that Spain is not asking for a bailout because its debt yields are manageable.
Opponents of the asset purchase programmes of quantitative easing, as enacted in Britain, America and Japan, claim they are of doubtful benefit and could in fact store up trouble for the future.
This objection will probably not prevent the Bank of England (BoE) from announcing another round of asset purchases next month which could derail Sterling's progress somewhat.
Sterling lost ground to the Canadian and New Zealand Dollars but moved higher against the Yen and the Aussie and held steady against the US dollar.
There is nothing of note by way of economic data being released today and FX market participants will probably not be missing much if they linger a little longer than usual at lunch. It is after all, Friday and in the words of Arthur Smith "...I couldn't really see the point of having lunch unless it started at 1 o'clock and ended a week later in Monte Carlo..."
Have a good weekend.
Conceived with Ambition