UK inflation data out this morning dropped unexpectedly to 2.6% a fall of 0.3% on CPI according to data released this morning.
Inflation had risen sharply in the wake of the Brexit result due to the increased cost of imported goods.
The Retail Price Index edged lower down from 3.7% to 3.5% in June.
The main talking point after these figures will be the Bank of England’s monetary policy direction. Economists say the fall in inflation could ease pressure on the Bank of England to raise interest rates.
GBP reacted accordingly, erasing all gains from the previous weeks trading session.