UK needs fiscal flexibility during EU talks says Hammond
Further comments from the Chancellor
- The election is to strengthen our hand against opposition to an EU deal
- Is campaigning on the assumption that he will remain as Chancellor
It looks like the market didn't like the fact that Hammond has touted that he's going to let the fiscal leash slacken for Brexit. It's a big fat excuse for not continuing to pull the finances into line, and UK watchers don't like such things.
The quid is taking back the 1.2770 level but will need to clear 1.2780/85 to take more of the pressure off.