GBPUSD hourly turns negative as Kwarteng fired, and Truss looks to backtrack
Kwasi Kwarteng, Chancellor of the Exchequer, was fired today, less than a month after he delivered his mini-budget on 23rd September. It had a devastating and destabilising market effect, as investors exited British gilts en masse, concerned about the level of deficit funding.
Moreover, it put British pension funds in a precarious position as yields soared, pricing in new risk premiums. The BoE needed to buy the excess to calm markets and restore normalcy. However, the majority of its intervention is due to end today.
Rumours are circulating that PM Truss will roll back the mini-budget's tax cuts. How she does this without losing more credibility will be a juggling act. Her fiscal policy was expansionary, and now she is likely to back down.
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In response, GBPUSD's hourly chart has developed bearish signals. Both its EMAs and stochastic have crossed down (black ellipses). If the stochastic maintains its position below 20 (blue arrow), cable will be under renewed pressure.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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