GBP/USD rallies as traders appreciate new minister’s plan

The GBP/USD strikes the 1.1400 mark, as the UK’s new Finance Minister, Jeremy Hunt, said, On Monday, that the government changed its course while reiterating that Britain is a country that “pays its debts.”

So far, Liz Truss’ U-Turn keeps investors’ mood positive, with global equities trading in the green territory. At the time of writing, the GBP/USD is trading at 1.14, above its opening price but below the two-week high.

GBP/USD jumped as UK’s newest Finance Minister scrapped PM Liz Truss’s initial budget proposal. The quiet US calendar left investors focusing on UK’s economic news on slashing the tax cuts from the newest government budget to calm the markets.

The 30-year bonds has fallen 45 bps, from 4.85% to 4.35%, as tweaks made by the newest Finance Minister bought PM Liz Truss government time.

Jeremy Hunt’s program increased the corporate tax rate while reversing tax changes on dividend income, alcohol duty, and a VAT-free shopping scheme aimed to raise GBP 5 billion. Hunt also commented that he would form an “economic advisory council” to provide independent advice to the government.