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Truss and Sunak as the final contenders

Truss and Sunak as the final contenders | 22 Juli 2022

22 Juli 2022, GBP/USD

GBPUSD trading plan:

With Truss and Rishi Sunak as the final contenders in the race to lead the nation, investors are trying to grapple with how UK policy will change if either takes power. Truss has made expansive tax cuts a cornerstone of her platform, which would imply big increases in UK borrowing. Investors also point to her tough stance on European relations and promise to review the Bank of England’s mandate as other worries, though it’s unclear whether she would actually carry out these plans. Meanwhile, Sunak, the former chancellor of the exchequer, would bring more predictable policies. He’s argued that tax cuts must be accompanied by cuts to government spending, and has stood for prudence with the public finances.

Investment idea: range 1.1920 - 1.2015.

David Johnson
Analyst of «FreshForex» company
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