On Friday (Oct 21), / fell, temporarily trading at 1.1203, down 0.16%.
Mr Truss’s resignation came a day after the UK consumer price index rose 10.1 per cent in September, up from 9.9 per cent in August and returning to its highest annual rate in 40 years.
Inflation is already five times as high as its 2% target.
The rise in the consumer price index, combined with unusually tight labor market conditions, strengthens the case for the Bank of England to continue to tighten policy, investment advisory BCA Research chief European strategist David Savary told CBN.
But at the same time, the deterioration in economic conditions means the Bank’s task is more complicated and raises the chances of a policy error.
GBP/USD traded close to the 1.1200 support confluence as traders await UK retail sales in early European trade on Friday.
The political crisis in the UK continued to put pressure on the pound as the dollar maintained its recovery despite stronger US Treasury yields.
