<p style=““ class=“text-align-justify“>It’s a busy day for UK markets as politics take center stage as UK prime minister, Liz Truss, is set to run back on her campaign promises and announce a corporation tax increase later today. The move is being cheered by domestic bonds as gilts are rallying hard for a second successive session.</p><p style=““ class=“text-align-justify“>The pound is also able to find small pockets of relief but is now still down 0.5% against the dollar at around 1.1270. The low earlier today hit 1.1230 amid a bout of dollar strength. You can check out the price action in this post <a target=“_blank“ href=“https://www.forexlive.com/news/a-summary-of-the-pound-volatility-this-morning-20221014/“ target=“_blank“>here</a>.</p><p style=““ class=“text-align-justify“>Just keep in mind that the BOE is also set to end its support for the gilts market later today, so the timing of the fiscal U-turn is a welcome one for UK assets in general.</p><p style=““ class=“text-align-justify“>The question now for UK political circles is whether or not Kwarteng’s sacrifice will be enough to take the heat of Truss? If not, expect further volatility to continue for the pound amid the political debacle in the coming weeks/months. This is all as emerging market as it can get. 🤪</p>

This article was written by Justin Low at forexlive.com.