The pound fell broadly on Wednesday as tumbling UK housing shares and a profit warning from retailer Marks and Spencer cast a further shadow over Britain's already slowing economy. Confidence in the UK housing sector was knocked after Taylor Wimpey failed to complete a capital raising.
Its shares fell more than 50 percent, leading others south - including Barratt Developments. Separately, shares in Marks and Spencer hit a 7-year low after the clothes, food and homewares group issued a shock profit warning, adding that others were likely to follow suit in a deepening consumer downturn.
By 1425 GMT, the euro was up 0.6 percent at 79.58 pence but still some way off the record high seen in April at 80.98 pence. The euro was gaining broader traction, having earlier hit a 2-month high versus the dollar at 1.5873 as markets anticipated a well-telegraphed European Central Bank interest rate hike to 4.25 percent on Thursday.
Analysts also cited jitters ahead of Thursday's US employment report. The pound was down 0.1 percent at $1.9935, having hit a 2-month high above the key $2 mark on Tuesday. It trimmed earlier losses after a report showed the US private sector shed more jobs than expected in June.
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