IMF issues a warning to UK PM- GBP/USD near session lows

As the new UK PM, Andy Burnham prepares to take over from Keir Starmer, the International Monetary Fund (IMF) has issued a warning. It is not clear why they have made this rather explicit intervention, but essentially they are warning against raising the top rates of tax, highlighting a better route via equalising CGT and broadening VAT and property taxes. To be honest this is pretty much what the UK tax experts are expecting anyway, so why this from the IMF? 

Well, it is hard to fathom but the important thing to note here is the impact the IMF can have on the UK credit rating and UK bond yields. So, this should not be ignored. The Pound stepped back yesterday and the rebound in the dollar was largely responsible for that. The GBP/USD reached a high at 1.3558 on Wednesday evening and it did nothing but fall back all day yesterday. 

The GBP/USD closed in the US last night at 1.3478 and today it has traded as low as 1.3457 so far. That has come as the EUR/GBP continues to push higher off the lows seen earlier in the week and test the 0.8500 handle on the topside this time. The GBP/USD is currently trading at 1.3462