Forex analytics and overview

British Pound Gains Ground As Prime Minister Truss Resigns

2022.10.20 11:08


The political soap opera continues in the UK, with Prime Minister Truss playing the part of the tragic hero. Truss resigned earlier today, which was perhaps not all that surprising given the chaos that has engulfed her government from the get-go. Truss becomes the shortest-serving Prime Minister in British history, with a grand total of 44 days.

The Conservatives find themselves in a dreadful predicament and will do their best to avoid an election, with Labour far ahead in the polls. The fiscal U-turns under Truss’s ill-fated leadership have badly damaged the government’s credibility, and the new Prime Minister’s first priority will be to settle things down.

Truss’s brief time in office triggered an economic crisis, as the plan for unfunded tax cuts was poorly received, sending GBP/USD to a record low and forcing the Bank of England to intervene and prevent a bond market crash. The new Prime Minister will have their work cut out as they will have to restore investor confidence after a tumultuous six weeks.

The country’s economic situation is not looking good. is back in double-digits, rising to 10.1% in September, up from 9.9% in August and above the consensus of 10.0%. It was a similar story from , which edged up to 6.5%, up from 6.4% and higher than the forecast of 6.3%. The Bank of England will have to continue raising rates, but a weak economy means that a recession is likely. The BoE meets next on November 3rd and policy makers will need to deliver a hike of 0.75% or a full point in order to maintain credibility in the fight against soaring inflation.

GBP/USD Technical

  • is testing resistance at 1.1254. Above, there is resistance at 1.1399
  • There is support at 1.1162 and 1.1085

GBP/USD Daily Chart



Source link

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 98,338.35 0.19%
ethereum
Ethereum (ETH) $ 3,388.32 1.17%
tether
Tether (USDT) $ 1.00 0.04%
solana
Solana (SOL) $ 252.78 1.50%
bnb
BNB (BNB) $ 659.10 1.52%
xrp
XRP (XRP) $ 1.46 0.69%
dogecoin
Dogecoin (DOGE) $ 0.425612 3.17%
usd-coin
USDC (USDC) $ 1.00 0.01%
cardano
Cardano (ADA) $ 1.04 2.57%
staked-ether
Lido Staked Ether (STETH) $ 3,386.07 1.25%
tron
TRON (TRX) $ 0.208964 3.49%
avalanche-2
Avalanche (AVAX) $ 43.09 1.39%
stellar
Stellar (XLM) $ 0.515671 10.44%
the-open-network
Toncoin (TON) $ 6.11 5.53%
shiba-inu
Shiba Inu (SHIB) $ 0.000026 4.61%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,012.60 1.05%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 97,996.26 0.41%
polkadot
Polkadot (DOT) $ 9.16 1.69%
chainlink
Chainlink (LINK) $ 18.03 1.04%
bitcoin-cash
Bitcoin Cash (BCH) $ 511.05 0.76%
weth
WETH (WETH) $ 3,386.45 1.32%
sui
Sui (SUI) $ 3.43 1.71%
pepe
Pepe (PEPE) $ 0.00002 3.58%
near
NEAR Protocol (NEAR) $ 6.90 2.58%
leo-token
LEO Token (LEO) $ 8.68 0.15%
litecoin
Litecoin (LTC) $ 96.59 5.40%
uniswap
Uniswap (UNI) $ 11.20 0.17%
aptos
Aptos (APT) $ 12.34 4.75%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,567.68 1.18%
internet-computer
Internet Computer (ICP) $ 11.61 0.70%
hedera-hashgraph
Hedera (HBAR) $ 0.143216 5.53%
usds
USDS (USDS) $ 1.00 0.00%
crypto-com-chain
Cronos (CRO) $ 0.189075 5.13%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.561732 2.97%
ethereum-classic
Ethereum Classic (ETC) $ 28.89 4.80%
render-token
Render (RENDER) $ 7.92 1.14%
bittensor
Bittensor (TAO) $ 527.33 2.98%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.05%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.48 3.83%
kaspa
Kaspa (KAS) $ 0.152321 1.65%
bonk
Bonk (BONK) $ 0.000047 1.37%
whitebit
WhiteBIT Coin (WBT) $ 24.45 1.23%
dai
Dai (DAI) $ 1.00 0.04%
arbitrum
Arbitrum (ARB) $ 0.847671 4.04%
vechain
VeChain (VET) $ 0.04255 1.40%
cosmos
Cosmos Hub (ATOM) $ 8.61 4.61%
okb
OKB (OKB) $ 55.83 2.99%
filecoin
Filecoin (FIL) $ 5.54 6.24%
blockstack
Stacks (STX) $ 2.22 4.11%
mantra-dao
MANTRA (OM) $ 3.69 3.04%