- UK: Liz Truss tenders resignation.
- The pound rises and marks maximums against its main rivals.
- GBP/USD reaches as high as 1.1306, but still fails to assert itself above 1.1300.
The GBP/USD jumped to 1.1306, marking a daily high after the resignation of Prime Minister Liz Truss. The pair then trimmed gains and returned to the 1.1250 area, as the dollar strengthened.
EUR/GBP moved from one-week highs at 0.8756 to move into negative territory for the day at 0.8690. It is trading around 0.8700, with a modest daily decline.
Prime Minister Liz Truss announced her resignation on Thursday, after announcements of her fiscal policies in September caused severe tensions in financial markets, forcing her to reverse her plans. Truss will remain in office until a new Conservative Party leadership election is held next week.
The instability and the saga of the political novel continue in the United Kingdom. Despite this modest improvement in the pound, it may come under pressure again.
The dollar on Thursday was falling but cut losses in the last hours and after the release of data from the United States, which included requests for unemployment benefits and the Philly Fed. After these and the resignation of Truss, the yields of Treasury bonds rose again, giving support to the dollar.
Technical levels
Source: Fx Street
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