On Tuesday (Oct 18), / choppy downside, temporarily traded at 1.1338, down 0.16%.
James Athey, chief Investment officer at Abrdn: Hunt has reconciled the divergence between political and economic needs and the market has already had a decent reaction at the open.
But we don’t think it really lets the British government off the hook completely.
The almost inevitable recession and the high inflation that accompanies it is a very uncomfortable situation, so Britain has a lot of work to do.
The pound still faces significant challenges.
All this uncertainty and volatility has sapped investors’ appetite to invest in the UK, and the downward pressure from the current account deficit will continue.
Sustained strength in GBP/USD over the latter would indicate that the pair has formed a near-term bottom and pave the way for further appreciation in the near term, on the other hand, the 1.1215-1.1210 area, or 23.6% Fibo.
Apologies from the Prime Minister!
