UK: Some looser fiscal policy will be welcomed by Sterling – ING

Economists at ING analyze GBP outlook ahead of the UK Autumn Statement. 

EUR/GBP to trade back below 0.8700

Today, Chancellor Jeremy Hunt is also looking to deliver tax cuts – but cuts that do not derail plans to stabilise the UK debt trajectory over a five-year horizon. 

We think some looser fiscal policy will be welcomed by Sterling at this juncture and continue to favour EUR/GBP trading back below 0.8700.

See – UK: Autumn Statement to offer muted market reactions – Danske Bank