There has been no respite yet for cable and sterling in general. Cable sits presently at 1.4440. Technical supports now lie at 1.4390/00 and then 1.4360/65.
One of the main driving forces behind the sell-off is worry surrounding the government’s ability to raise the huge borrowing it requires. The Debt Management Office has announced a record £220 bln pounds of gilts issuance for 2009/10. Gilts, not surprisingly, have slumped lower on the news.
The news that the top rate of tax for people earning over 150k is going to 50% is not being well-received either. The feeling is it will only serve to further disincentivise talented people and increase the possiblity of a major brain drain.