Breaking: GBP/USD jumps beyond 1.1200 as UK to reverse cut to higher rate tax

BBC News reported on Monday that the UK government is expected to roll back the proposed scrapping of the higher rate of income tax that has sparked a backlash in the ruling Conservative Party.

No further details are provided on the same.

Meanwhile, the Sun is also reporting that UK PM Liz Truss is preparing to ditch scrapping a 45% tax rate following crisis talks with Chancellor after brutal Tory backlash last week. 

Market reaction

On the above headlines, the pound caught a fresh bid and jumped above 1.1200 against the US dollar. At the time of writing, GBP/USD is adding 0.84% on the day at 1.1252. In doing so, cable is trading at the highest level in six days, eyeing September 23 highs of 1.1274.

GBP/USD: 15-minutes