Autumn Statement to offer muted market reactions – Danske Bank

GBP was one of Tuesday’s winners. today, UK Chancellor Jeremy Hunt will present the Autumn Statement. Economists at Danske Bank analyze how could the Pound react to 

Chancellor will be wary to incorporate anything that will not ensure and signal debt sustainability

There has been speculation of whether tax cuts will be announced amongst other changes to income taxes, inheritance tax and/or national insurance. 

The measures presented will try to help the Conservative Party following poor performance in the polls with election year coming up. According to the latest Politico poll of voting intention from 17 November, the Conservatives stand at 27% while the Labour Party has pulled ahead at 45%. However, with the ‘mini’-budget scandal still fresh in mind, the Chancellor will be wary to incorporate anything which will not ensure and signal debt sustainability over the forecast horizon. 

Overall, we do not expect this to be a market mover event and by extension for GBP.