Market Briefing: Cable Snaps, Destabilizing Currency Markets
The pound sank like a dinghy in the North Atlantic over the weekend, hitting record lows against the greenback and contributing to a worsening in sentiment across the global financial system. In several interviews, Chancellor of the Exchequer Kwasi Kwarteng seemed to shrug off Friday’s devastating market reaction to the new UK government’s proposed fiscal plans and doubled down on tax cuts, saying there was “more to come”. The sterling-dollar pair — often known as the “cable” — briefly dropped almost 4.7 percent before staging a modest recovery as traders positioned for a response from the central bank. Calls for...