GBPUSD fell to a record low on Monday, as markets continued to react to the British government's decision to make an array of significant tax cuts.
Following last week’s 50 basis point hike by the Bank of England, Finance Minister Kwasi Kwarteng moved to adjust income tax in the UK.
The move came as it is widely believed that Britain is now in an economic recession, as a result of record levels of inflation.
Speaking today after the recent decline of the Pound, BOE Governor Andrew Bailey stated that, “The Bank is monitoring developments in financial markets very closely in light of the significant repricing of financial assets”.
GBPUSD fell to a low of $1.035 on the news.
Crude oil declines to 9-month low
Crude oil slipped to a nine month low to start the week, as the U.S. dollar continued to strengthen.
The rise in the U.S. dollar, which is the base currency for crude oil means that the cost of importation is higher for foreign nations.
As a result of this, demand for the energy has declined, despite the tightening of supply coming from Russia.
Although OPEC+ have opted not to significantly increase output, it seems the cartel is having issues with its agreed distribution levels.
In August, figures showed that OPEC+ had missed its target by 3.58 million barrels per day in August.
Trading any financial instrument on margin involves considerable risk. Therefore, before deciding to participate in margin trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney or accountant as to the appropriateness of an investment in margin trading is recommended. This electronic mail message is intended only for the person or entity named in the addressee field. This message contains information that is privileged and confidential. If you are not the addressee thereof or the person responsible for its delivery, please notify us immediately by telephone and permanently delete all copies of this message. Any dissemination or copying of this message by anyone other than the addressee is strictly prohibited.