A choppy start for the pound against the euro and the dollar this morning following the chancellor’s U-turn, but overall sterling is significantly stronger than it was against both currencies this time last week.
In the latest political-economic development, Tory MPs threatening “all-out rebellion” following the recent financial markets chaos has convinced the chancellor to ditch the 45% tax cut.
Former cabinet minister Michael Gove said the tax cut for the richest 1% of Britain’s was poorly timed as it comes at a time when “people are suffering”. Consequently, many Conservative MPs feared that the “nasty party” label Theresa May gave them in 2002 was returning. Kwasi Kwarteng said the cut was “a distraction”.
Today markets can expect lots of PMI data from the UK, eurozone and US.
In the US, ISM Manufacturing PMI for September will be released today, while key JOLTs will be released tomorrow.
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