Sterling outperforms on the day – the backdrop remains challenging, however, economists at Scotiabank report.

The broader technical tone looks negative

“Chancellor Hunt has his work cut out to restore investor faith in government finances.”

“Cable looks to have formed a bearish ‘evening star’ candle on the daily chart, reflecting a strong rejection of the long-term bear trend resistance at 1.1535 which the pound tested earlier this week.”

“Unless spot can – quickly – regain the low/mid.1.15s and advance, deeper losses seem more likely to resume.”