GBPUSD – Flat
GBPUSD trading plan:
Liz Truss’s plan for growth, melding the biggest tax giveaway in half a century with Thatcherite deregulation, is a straight-up gamble with Britain’s future. The market’s verdict on the £220 billion policy blitz set out by Kwasi Kwarteng was swift and devastating. Sterling crashed below $1.09 for the first time since 1985, taking its slump for the year to date to 20%. Five-year gilts posted their biggest ever daily decline. Even before the chancellor’s statement, former Bank of England policy makers were warning that Prime Minister Liz Truss’s determination to cut taxes regardless of the circumstances risked pushing the UK into a sterling crisis. The tax cuts will cost the Treasury around £161 billion over the next five years. A further energy guarantee will add about £60 billion to that sum in the next six months, the only figure the Treasury provided.
Investment idea: sell 1.0770 and take profit 1.0711.
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