UK Pound Drops Down To An All-Time Low Against The US Dollar

Between June and mid-September, UK’s Pound mostly traded in the $1.14 to $1.23 bracket against the US Dollar. However, the currency has been losing momentum at an alarming rate since the past few days. After registering five back-to-back red candles on the daily, the GBP/USD pair was trading around $1.07 at the time of writing. 

Earlier today, the pound dropped down to an all-time low level of $1.03.

The drop followed the unveiling of historic tax cuts funded by huge increases in borrowing by the Chancellor of the Exchequer, Kwasi Kwarteng. The Chicago Mercantile Exchange temporarily halted GBP futures trading on its platform, given the volatility. Following the plunge in value, GBP fell as much as 4.7% earlier today and is now down by 3%. The investors’ confidence is definitely shaken by these factors.