The Resolution Foundation has today released a report suggesting that UK Chancellor Jeremy Hunt has £23bn of fiscal headroom for stimulus at the 6 March budget.

The 6 March UK budget could also throw up some wild cards on incentives of UK pension funds to invest in UK asset markets. The decline of London's ability to attract major listings has been well-documented and some incentives here – including the additional concept of a British Individual Saving Account – could prove something of a wild card to Sterling's prospects.

A softer Dollar environment could see GBP/USD edge up to 1.2670/1.2680 today, but we would not chase the move higher.