Pound Struggles, Truss Reverses Plan, UK Finance Minister Fired

In an unambiguous retreat, British Premier Liz Truss, on Friday, fired her finance minister and partly reversed the tax plan, she previously supported, because the said plan rattled global financial markets, and incited investors’ concerns and fueled a political crisis that still threatens the political future of Liz Truss herself.

Firing Kwarteng also failed to lift the British pound or advance gains made by government bonds. Although Prime Minister Liz Truss of Britain on Friday fired the country’s top economic official in an effort to end the market turmoil that has raged for weeks, the move failed to fully soothe investors: The British pound fell, and recent gains made by government bonds were reversed.

‘Parts of our mini budget went further and faster than markets were expecting,’ Truss says. There are several calls for reevaluating the entire package of unfunded tax cuts. Lawmakers are talking about whether to ask Truss to resign after financial markets were rattled.

The GBP/USD pair come under aggressive selling pressure on Friday and snaps a two-day winning streak to a one-week high touched the previous day. The intraday downfall is sponsored by a combination of factors, though spot prices show some resilience below the 1.1179 round-figure mark.