On Tuesday, the pound was the only G10 currency holding on to gains against a rising dollar as Liz Truss took office. In the view of economists at ING, the GBP/USD could retest the 1.16 level.

EUR/GBP may edge back above 0.86

“Today, expect more GBP volatility as details about Truss's plans continue to emerge. However, the net impact of support measures may not be too straightforward as they may easily get mixed in with the implications for BoE policy.”

“EUR/GBP may edge back above 0.8600 today but seems to lack strong bearish momentum, while cable could retest 1.1600.”