Sterling's response to the government's announcement was near-immediate and extreme.
The pound lost nearly 3.6% against the dollar Friday and continued to fall Monday when the market reopened. It hit an all-time low below $1.04 early Monday morning in London. It has since recovered slightly, trading around $1.08 at 8:30 a.m. Tuesday, but remains at what was — until this week — a 37-year low. It has fallen from $1.35 at the start of the year.While some supporters of the government's plan have pointed to the dollar's bull run this year as the cause of sterling's slide, the pound also fell against the euro.
The euro is current trading around £0.89 — up from £0.84 at the start of the year — despite the euro zone facing its own significant challenges, ranging from an energy crisis to growing recession risks.Yields on U.K. government bonds have rocketed following the government's budget — meaning their prices have fallen drastically .are now set for their biggest monthly rise since at least 1957, according to a Reuters analysis of both Refinitiv and Bank of England data.
Soaring yields and a slumping pound have led some mortgage lenders to pause new home loans and withdraw certain mortgage offers.
Ohhhh....,MORE PAIN on the way.....
Time to buy a ticket for a UK visit. Here comes the Yank!
Time to buy a ticket for a UK visit. Here comes the Yank!
Time to buy a ticket for a UK visit. Here comes the Yank!