The pound improved by around 0.35% against the euro yesterday, while earlier gains on the US dollar were chased back following the release of the Fed’s FOMC minutes.
Jeremy Hunt’s fiscal headroom – the term used by economists to denote the gap between actual public borrowing and forecasts – has improved since March. Some estimates now put it at as much as £15bn, which would allow much more substantive fiscal loosening than had been expected.
However, that figure is much thinner that the average of £25bn enjoyed by a run of chancellors stretching from George Osborne to Rishi Sunak himself.
GBP/USD: the past year
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