Flash: ‘Negative Watch’ – TD Securities

FXstreet.com (London) - Research teams at TD Securities said Fitch sent a shot across the bow by putting the US credit rating on ‘Negative Watch’ late in yesterday’s North American session.

Key Quotes:

“The agency emphasized that political dysfunction not only threatens to push the country into technical default in the coming days, but also damages the broader credibility of the government even if a default is averted”.

“Markets including the FX space have nevertheless continued to hold their breath for some type of resolution, and have traded in tight consolidative ranges”.