The British pound started the day on the negative side, falling more than 300 pips. UK data made it evidently that the economy is far from recovering. Forex traders quickly went onto a massive liquidation across the board on all pound related pairs.

The massive reaction re-affirmed that the worst of economy downturn is not near over yet. Market had gone from negative to over positive in the past couple of days and today´s negative numbers wiped all that gains from yesterday on fx trading.

GBP/USD lost over 100 points in a manner of seconds following S&P´s ratings. The pair is currently trading a little over 1.56 with a daily low of 1.5520.

Standard & Poor's credit analyst David Beers stated that "We have revised the outlook on the UK to negative due to our view that, even assuming additional fiscal tightening, the net general government debt burden could approach 100 percent of GDP and remain near that level in the medium term."  The forex market is already concern about the tax burden on consumers and the distant picture of an economical recovery.

Britain was close to losing its AAA credit rating on concerns that Standard & Poor´s rating agency is a clear reflection of the deteriorating economy and the inability of the government to solve debt burden soon.

UK numbers came negative and fx traders are still waiting for US jobless claims, which are expected to come higher again. Philly fed Manufacturing index will be released as well.