GBP/USD depreciated a second session by 0.9% to 1.1219. Economists at DBS Bank expect the pair to test 1.10 on a break under 1.1150.

Political backdrop still a drag

“While the Bank of England intends to start reducing its bond holdings from 1 November, it will refrain from selling longer-dated bonds this year. Meanwhile, speculation remains high that Prime Minister Liz Truss would not survive the Tory rebellion before the Budget announcement on 31 October.” 

“GBP must trade below 1.1150-1.1450, the range set since last Friday, before it can fall to the next support around 1.10.”