The pound plunged nearly 5% at one point to break beneath 1985 lows and hit $1.0327. Moves were exacerbated by thinner liquidity in the Asia session, but even after stumbling back to $1.05, the currency is still down some 7% in just two sessions. Options pricing implies a wild ride ahead.
"The market is now treating the UK as if it's an emerging market," said Rabobank strategist Michael Every in Singapore.
"And they're not wrong in terms of the policy response and the naivety of thinking that boosting demand rather than supply is how you deal with a supply side shock," he said.
In other news,
@Chippy_boy said “just give it a chance and everything would be fine” and the markets are now becalmed……..