The sterling has dropped back on the spot forex market, thanks to a recent warning from Fitch. Yesterday, the sterling was finding solid footing against the U.S. dollar. However, spread bets and CFDs on spot forex trading should consider that things have changed today.

Fitch warned that the U.K. deficit was quite large, and that there was a rather large challenge to be faced by Britain in its attempts to overcome the current deficit. The news helped send the FTSE 100 lower, as well as the U.K. pound lower on the spot forex market. Striking Spanish workers haven't been helping matters.

However, Fitch did stop short of reducing Britain's AAA rating. This is good news, since a loss of this high rating for Britain's debt would be devastating. The new Conservative government is doing what it can to cut the deficit, and Fitch recommends robust measures to cut the deficit as quickly as possible.

Last week, comments by Hungarian leaders led speculation that Hungary could be the next Greece. With yet another European country on the verge of fiscal disaster, the euro sank below the $1.20 level in spot forex trading last week.

Today, the euro showed some signs of stability on the spot forex market as Hungary began backpedaling on its earlier comments. 

However, spread bets and CFDs on the euro in forex trading should consider that, even so, the euro isn't really making a great deal of progress. The slide might have been arrested, but EUR/USD still remains below $1.20, and it will take a lot more than a little backtracking by Hungary for forex traders to regain confidence in the euro.