The EUR advanced against the British Pound as European stocks rebounded and Fitch Ratings said the U.K.'s credit rating is most at risk among top-rated nations. The EUR traded at 89.86 U.K. pence, from 89.49 pence yesterday. The single European currency, which fell against the Yen and the U.S Dollar after a report showed German investor confidence declined in November by more than economists estimated, erased losses as stocks rise.
The GBP dropped against all but one of the 16 major currencies, after a warning on the UK from ratings agency Fitch. The currency sold off sharply during the European session after David Riley, Fitch Ratings' co-head of global sovereign ratings, said in an interview Tuesday that the U.K. has the highest risk of major economies of losing its AAA status.
The Sterling slipped as far as $1.67 well below a 3 month high of $1.6844 reached on Monday. Despite the Pound's recent strength, and also the relatively positive rate decision, the British economy is still in trouble, and the bearish sentiment may hold on