British Pound (GBP): UK Chancellor Kwarteng Sacked, PM Budget U-Turn Expected

GBP/USD - Prices, Charts, and Analysis

• Kwasi Kwarteng is sacked after six weeks as Chancellor.
• PM Truss is likely to make a U-turn on corporation tax.

The UK political scene is an absolute shambles at the moment with Chancellor of the Exchequer Kwasi Kwarteng being ousted after just six weeks in office, while PM Liz Truss is said to be making a huge U-turn on her recent mini-budget later today. It looks as though Kwarteng is carrying the can for the recent mini-budget that has been derided all around.

Over the last few days, both Kwarteng and PM Truss have said that the mini-budget will not be changed or amended, although it now seems that one of the major pillars of the budget, a cut in corporation tax will be reversed. The Chancellor has already had to do a U-turn and scrap plans to cut the top rate of income tax.

Despite all the political shenanigans, Sterling is relatively calm and keeping hold of most of its recent gains. GBP/USD trades around 1.1250, while the gilt market continues to rally (yields falling) ahead of today’s final gilt purchase program.

GBP/USD Chart

Gilt 30-Year Yield Chart

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