In the UK, the new Chancellor will deliver a key announcement today to fix the recent fiscal disaster. Economists at ING expect a good deal of volatility around the announcement.

Hunt's speech is a make-or-brake event for sterling

“We continue to see elevated volatility in the pound and mostly downside risks beyond any potential relief rally after today’s announcement by the new Chancellor. We suspect anyway that the government will need to sound very convincing in their fiscal U-turn to bring cable sustainably back to 1.15-1.20.”

“Sub-1.10 levels, also considering our call for a stronger dollar, remains our base case scenario in the coming months.”