No major events are expected today.

The UK parliament has called for a vote of no confidence in Prime Minister Liz Truss. The dissatisfaction with Truss stems from the programme she presented to tackle the energy crisis by drastically cutting taxes. The political crisis in the UK is gaining momentum, which is negative for the GBP, however the British currency ignores the negative background and rises. The reason for that is negative dynamics of the American debt market – yield of 10-year treasury bonds reached its peak last week at 4.01% and has fallen to 3.66% since then.

It was the strong increase of US government bond yields in September which had a favourable effect on the value of the US dollar. Yields are now falling, which is contributing to a correction of the dollar.

Recommendations: Buy 1.1300/1.1270 with TP 1.1388.