With Truss’ Resignation, The Pound Rallies The Daily Financial Trends

The British pound sterling rallied on the resignation of British Prime Minister Liz Truss after only six weeks in office.

Sterling rose 0.5%, reaching $1.13 vs the US dollar before falling slightly back.

The FTSE 100 index also briefly surged, before falling back, as the FTSE 250 remained in the green.

The BBC reported an analyst had told its reporter that the markets were relieved at Truss’ resignation, however there remained great uncertainty in the markets.

In her resignation announcement, Liz truss admitted her mandate could not be delivered. When she introduced her “mini-budget,” promising enormous tax cuts, but failing to explain how they would be paid for, borrowing costs soared, with the bond market almost collapsing. That forced the Bank of England to go on a gilt-buying spree to stabilize the market.

Last week Chancellor of the Exchequer Kwasi Kwarteng exited his position, allowing successor Jeremy Hunt to reverse a number of elements of Truss’ original plan.

The Daily Financial Trends

About Stu Turley 3230 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.