Exchange rates - Pound falls to lowest level against dollar since 1985

The day's big economic story is about the pound falling to its lowest level against the dollar for nearly 40 years, and you need to think about the macroeconomic implications of this - they aren't good.

However, you might think about the factors that have precipitated this - in this case, the Governor of the Bank of England has been explicit about the fact that he doesn't think that the Bank is going to be able to stop the economy from falling into a recession, and it is this that seems to have moved markets, and there's a need for strong leadership from the Prime Minister and the Chancellor in the next few days and weeks.

The US dollar has rallied in the past few weeks as the pound has sunk amid fears of a recession in the UK