Rolling coverage of the latest economic and financial news
- Introduction: Pound has fallen back to $1.31
- Threat of hard Brexit in December 2020 looms
- UK inflation tipped to fall to 1.4%
- Energy price cap could help
Shares in UK-focused companies are coming under fresh pressure this morning.
Housebuilders such as Barratt (-2.7%), Persimmon (-1.8%) and Berkeley Group (-1.7%) are among the top fallers.
Brexit jitters have pushed the pound down to a two-week low against the euro.
Sterling dropped as low as €1.1737 this morning, just a few days after hitting a three-year high over €1.20
The markets may have run ahead of the train again, expecting the volatility of the pound to be over. In this case, there are more and more similarities with Trump, whose arrival marked the increased uncertainty for the markets, although it still contributed more to their growth than to their decline for stocks.