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Writer's pictureRosbel Durán

💷 Pound Recovers U.K. Budget Losses

  • Sterling pound is trading back above 1.11, this means it has reversed all losses derived from the release of the mini budget which borrowing to fund measures sent GBP denominated assets lowers

  • Reductions in taxes and the lack of potential revenue scared market participants and took the GBP/USD to record lows of 1.0350, with gilts were pressured with 5-yr rates rising 50bps on the day, a record move

  • BoE intervention via guilts purchasing program to stabilize markets took the pound away from parity, however, some desks have lowered their views on the rate despite the central bank's actions. The Bank of England simply does not have the firepower as the BoJ or the Fed


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