Sterling higher awaiting Hunt’s statement | Forexlive

The gap higher today owes to some optimism as newly appointed UK finance minister, Jeremy Hunt, looks to tear apart the mini-budget further as well as some hawkish tones from BOE governor Bailey over the weekend here.

Hunt is set to make a statement today and the latest report now is that Truss and himself has signed off on deferring the 1% cut in income tax until 2024. The main message of his statement later will be to ensure fiscal sustainability, largely aimed at the gilts market surely.

Breaking:

Jeremy Hunt expected to go even further in ripping up mini budget *today*

He’s making announcement in Commons to support fiscal stability

Liz Truss & Hunt signed off deferring 1p cut in income tax until 2024 at Chequers yesterday

— Steven Swinford (@Steven_Swinford) October 17, 2022

For now, the pound is taking in good comfort from the headlines and the opening gap higher with GBP/USD working its way up to 1.1260 levels. Last week’s highs around 1.1350-60 will be a notable resistance point alongside the trendline resistance from the 13 September and 5 October highs, sitting around 1.1371 at the moment.