INSIDER HOST: Currency markets are reeling this morning. That’s after the pound hit an all-time low of 1.035 against the dollar. Insider’s Phil Rosen writes the 10 Things Before the Opening Bell newsletter.
PHIL: Two factors are at play in the pound’s steep drop - first, the UK’s recently unveiled tax cuts — the biggest in 50 years — make investors fear inflation could get worse and rattle a British economy already on shaky footing.
And second, aggressive policy from the US Fed has helped push the US Dollar to a 20-year high.
That means Brits seem set for an extended cost-of-living crisis, with high prices for food and energy expected to soar this winter.
And, politically, outcry over the tax cuts is pushing members of Prime Minister Liz Truss’ Tory party to call for a no-confidence vote - just weeks in office.
THE REFRESH HOST: Phil Rosen covers markets for Insider.