Analyst: The pound fell due to weak economic data and compounded by tight fiscal policy.

The pound fell to a three-month low against the euro as the Bank of England is likely to take more aggressive interest rate cuts and the UK's fiscal policy will be tighter. City Index analyst Fawad Razaqzada said in a report that weak recent economic data in the UK has increased expectations of further rate cuts this year. Bank of England Governor Bailey told the Financial Times that if there are signs of a slowdown in the job market, there may be larger interest rate cuts. At the same time, fiscal rules set by the UK government may lead to increased taxes to strengthen public finance. The euro rose to a high of 0.8696 against the pound.