The selloff yesterday had a lot to do with concerns about the UK’s fiscal path, with Rachel Reeves coming under intense scrutiny. During the PMQs yesterday, she was seen teary eyed and prime minister Starmer was required to show strong support to defend her. And that includes in this morning’s showing as well as he publicly reaffirmed his full support for Reeves and commitment to fiscal rules.

It remains to be seen whether this is the right policy path for the UK but at least we might have just avoided another Truss mini-budget moment. The pound is also keeping steadier as such, with cable seen at 1.3655 at the moment.

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