Pound Falls On Credit Rating Story

The pound is sharply lower after a report in the Telegraph said that the UK's AAA credit rating may be revised by rating agency Standard & Poor.

With the UK set to borrow $500 billion over the next five years, taking national debt above $1 trillion for the first time ever, interest payments would soar should the UK's credit rating be downgraded.

However, there is little fresh news in the Telegraph story, which may prompt denials later on in the session. Nevertheless, GBP sentiment has soured since the market reacted to the headline, which forced Cable from 1.4300 down to 1.4150 lows.