Why is the pound falling?

Is America about to enter a recession and take the world with it? Yesterday the pound was on track for its longest losing streak in a year as markets once again began to fear a US recession. The week started with what looked like the bursting of a tech bubble. Japan’s Nikkei dropped by 12 per cent in a day – its largest fall since Black Monday nearly four decades ago. But by Tuesday morning, stocks had recovered 10 per cent and markets looked to be steadying while the jittery hands of investors began to hold firm.

Are we out of the woods? Not quite. A leading Wall Street Bank – BNY Melon – this morning warned that global markets would be in turmoil for ‘months’.