In a June 2016 referendum, British voters supported a measure to leave the European Union through a process called Brexit.6 The GBP declined significantly upon the U.K.’s split from the EU, and the value fluctuated in response to trade negotiations.
The pound sterling declined again in Sept. 2022 after Prime Minister Liz Truss announced economic policies on tax cuts. Although the Truss government aimed to boost U.K. economic productivity, investors and forex traders were concerned that tax cuts would increase already-high inflation and debt. The GBP/USD sank to an all-time low of 1.03 on Sept. 26, 2022.7