2022-09-23 · GBP/USD
The Mini-Budget
The UK gilt crisis
MarketGBP/USD
Biggest move-3.4%
Extreme at (UTC)20:30
Difficulty★★★★☆
What happened
On 23 September 2022 the UK government announced unfunded tax cuts. Gilts collapsed and the pound fell to record lows against the dollar days later.
A political announcement turned into a multi-day trend.
How to survive a day like this
- Check the economic calendar and the news before you trade: these days were announced or brewing for hours.
- Reduce your risk: on extreme days, 0.5% per trade is plenty, because stops can slip far beyond where you placed them.
- Do not fight the first move. The first candles of a shock set the direction for the rest of the session more often than not.