U.K. stocks slip as pound rallies to highest since Brexit vote

Pound rises as traders price in Bank of England rate rise in May

U.K. stocks dropped for a second straight session on Tuesday, bucking an otherwise positive trend across Europe, as the pound rallied to its highest dollar level since the Brexit referendum in 2016.

Traders were waiting for U.K. unemployment and wage data in the morning, looking for a hint to the health of the U.K. economy ahead of the Bank of England’s monetary policy meeting in May.

What are markets doing?

The FTSE 100 index UKX, -0.06% was down 0.1% at 7,194.80, on track for its lowest close since April 6, according to FactSet data. On Monday, the London benchmark fell 0.9%, as sterling showed signs of strength.

On Tuesday, the pound GBPUSD, +0.0767% jumped to $1.4372, up from $1.4338 late Monday in New York. Sterling has now rallied more than 3% against the dollar over the past month…

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