French credit rating downgrade affects euro

When France’s credit rating was downgraded on Tuesday (November
20^th), it had ramifications not only for its own
economy, but also for the wider economy of the continent, with the

currency exchange rate for the euro dropping as investors moved
away from the risky currency.

Moody’s stripped the formerly well-performing economy of its
prized AAA rating on Tuesday to leave it with an AA1 rating, citing
the fact there is an uncertain fiscal outlook in the nation as a
whole at the moment.

This saw a strong day for the pound however, as investors looked
elsewhere aside from the single currency to see it fall by 0.2 per
cent against sterling to sit at a resistance of 80.65.

Elsewhere the pound looked strong against the dollar again as it
rose by another 0.1 per cent throughout Tuesday and back towards
the crucial level of 1.6000, finishing at 1.5930 against the
greenback.