The UK Chancellor is looking at ways to reduce taxes. The focus this week is on the Autumn Statement, where we think Jeremy Hunt might have around £16bn to play with, given the better fiscal trajectory than expected. Our UK economist does not, however, think this moves the needle for the Bank of England rate story, where we think rates have peaked and the BoE will start easing next August.

Speculation over tax costs in a risk-positive environment should be good news for Sterling. 

GBP/USD can push up to 1.2590, while EUR/GBP can correct back to 0.8700 this week.