Pound Falls Despite Hopes Of U-turn On U.K. Tax Cut Plan
14 Oktober 2022 - 8:04AM
RTTF2
The pound slipped against its major counterparts in the European
session on Friday, despite optimism over the likelihood of U-turn
on tax cuts in the mini-budget by the U.K. government amid a
turbulence in the markets.
There were reports on Thursday that Prime Minister Liz Truss is
likely to make changes to the mini-budget that fuelled concerns
about financial stability.
Chancellor Kwasi Kwarteng has shortened his trip to the US for
discussions on the financial plans it presented last month.
Gilts and the pound moved up on Thursday on hopes that the
government would reconsider changes to corporation tax.
Britain's trade department minister Greg Hands said that the
Prime Minister and the Chancellor are committed to stick to the
growth plan, contradicting reports that the government could change
some parts of the fiscal plan.
The pound dropped to 1.1230 against the greenback and 166.02
against the yen, off its early highs of 1.1366 and 167.21,
respectively. The pound is poised to challenge support around 1.10
against the greenback and 159.00 against the yen.
The pound reversed from its prior highs of 1.1345 against the
franc and 0.8617 against the euro, weakening to 1.1241 and 0.8671,
respectively. The pound may locate support around 1.06 against the
franc and 0.88 against the euro.
Looking ahead, Canada manufacturing and wholesale sales for
August, U.S. retail sales and import and export prices for
September, University of Michigan's preliminary U.S. consumer
sentiment index for October and business inventories data for
August are set for release in the New York session.
Sterling vs CHF (FX:GBPCHF)
Forex Chart
Von Mär 2024 bis Apr 2024
Sterling vs CHF (FX:GBPCHF)
Forex Chart
Von Apr 2023 bis Apr 2024