Dollar remains a bit soft in Asian session today after Fitch downgraded US's AAA rating outlook to negative, noting “declining confidence that timely fiscal measures necessary to place U.S. public finances on a sustainable path will be forthcoming.” The negative outlook indicates a slightly greater than 50% chance of a downgrade over a two year horizon. That followed the supercommittee's failure to reach a deal last week, which could now trigger a $1.2T automatic cut that starts in 2013. Fitch wanted that if no "credible" agreement is reached over the next two years on debt reduction, it could downgrade the rating. Worsening of economic and fiscal outlook could also trigger a downgrade by the end of 2013
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