GBP/USD rises further above 1.1300 boosted by Truss’s resignation and weaker USD

• Liz Truss resigns as Prime Minister after 45 days.
• Pound up across the board, among top performers of the American session.
• GBP/USD up more than a hundred pips on Thursday.

The GBP/USD printed a fresh daily high during the American session at 1.1335, boosted by a rebound of the pound following PM Liz Truss's resignation and a weaker US dollar.

Truss and USD down, risk appetite and GBP up

The greenback is falling across the board as Wall Street posts gains with main indexes up around 1%. The DXY is under 112.30, down by 0.55% even as US yields move rise.

The pound strengthened following the resignation of Liz Truss as Prime Minister after only 45 days. The new PM will emerge from a new leadership election at the Conservative Party next week.

Market participants reduced their bets on Bank of England interest rate hikes. They now see a less aggressive BoE. Now attention will turn to the potential successors that could include Rishi Sunak and Boris Johnson.

The GBP/USD ran to 1.1305 initially, following the announcement and more recently printed a fresh daily high at 1.1336, amid a decline of the dollar. It is hovering around 1.1300. EUR/GBP is modestly lower for the day, trading under 0.8700 while GBP/JPY is up approaching 170.00.

Technical levels