The Sterling fell to a two-year low late on Friday in US trading, to $1.5163 after the announcement by credit ratings firm Moody’s of its intention to downgrade the UK.

Today will be the first opportunity for overseas markets including those in Asia and Europe to respond to the credit downgrading.

Despite the credit downgrade, analysts are predicting that the move will have little impact on the impression of UK’s stability by overseas markets, instead the ratings change is more likely to add fire to UK internal political debate.

The loss of AAA status has been experienced by many western countries, with the USA losing it rating in 2011 to Standard & Poor’s and France’s to two agencies. Many UK economists have been actively pushing for a weakening of the sterling in order to increase overseas trade.