Pound falls to 1.2960
UK inflation rose to a six-month high at 1.8% y/y compared to 1.6% in data released today. That bounce was short-lived as the market returns its focus to sluggish growth in Europe, Brexit and fiscal uncertainty.
The pound rallied from 1.2960 to 1.3065 when Javid quit, hoping that it would mean looser fiscal policy but the signals since then have been mixed. Increasingly, it looks like any stimulus will be marginal and that's not enough for a market that wants to see the money.
In the bigger picture, today's fall puts the February low of 1.2869 back into play.
