Sterling looks likely to reach parity with the dollar

The pound plunges to an all-time low in scathing appraisal of their fiscal plan

The UK budget will require an extra £72bn of government borrowing over the next six months alone.

It is looking more and more likely sterling will fall to parity against the dollar this year based on option market pricing.

Sterling-dollar implied volatility suggests there is a 60% probability spot will hit $1.00 before the end of this year - based on spot trading at 1.0552 - compared to 32% on Friday. The currency pair plunged to a record low of $1.0350 in Asian trading this morning after Kwasi Kwarteng, the new Chancellor of the Exchequer signalled more tax cuts might be in the pipeline.