The pound bounces as the new premiership instils a sense of stability. Former Chancellor Sunak becomes Britain’s Prime Minister as Sterling recovers from the budget disaster. The new finance-relevant leadership gives investors hopes of better plans to tackle the mounting economic crisis. Volatility is likely to rise leading up to the new budget in mid-November. As for now, all eyes are on the BoE to deliver a 75bp hike which may add further stress to the economy. How far the rally may go would depend on how fiscal and monetary policies play out in these turbulent times. 1.1700 is the first resistance and 12000 a fresh support.
