EUR spikes from 1.4160 to highs of 1.41995 and USDJPY fall from 79.15 to 78.89 lows. Note this actually passing Moody’s since S&P have “Creditwatch Negative” is more imminent i.e. in the next month or two VS Outlook Negative from Moody’s which could be a downgrade in the next 18 months
– S&P PLACES U.S. ‘AAA/A-1+’ RTGS ON CREDITWATCH NEGATIVE
– S&P SAYS COULD LOWER U.S. RATING AS SOON AS THIS MONTH IF THERE ARE FURTHER DELAYS TO DEBT TALKS
– S&P SAYS IF DEAL DOES NOT STABILISE THE DEBT, WOULD CUT THE LONG-TERM RATING
HSBC Global Research