Just six weeks into her reign as Prime Minister, Liz Truss is facing an open revolt. Yesterday a sixth Conservative MP called for her ouster and the 1922 Committee will reportedly meet today regarding letters set challenging her leadership.
Polling for Conservatives is falling off a cliff and a new flip-flop on pensions is adding to the anger. Today’s fracking vote and imbroglio on whether it was a confidence vote certainly didn’t win any fans.
Here’s ITV’s Robert Peston late today.
The next big deadline is October 31, when the mini-budget will be formally released. At this rate, she might not last that long.
All of it is scaring dip buyers away from the pound. In cable, something of a wedge has formed on the chart and it’s in danger of breaking. If 1.0924 breaks, we could quickly be talking about parity again.
For now, the gilt market is helping with 10-year yields back below 4% but a stumble from the Bank of England in November could break the market again.