The pound continued its slide against both the dollar and the euro Wednesday, as the latest U.K. papers on its post-Brexit relationship with the European Union suggested a leadership still thrashing about for options rather than delivering a clear set of proposals.

The pound has traded for much of the morning so far at below $1.28 for the first time since June. At 10.02 am in London, the currency had recovered slightly from the morning's low of $1.2792 against the greenback to trade at $1.2802 and the euro was trading at £0.9211, up 0.42% compared with the previous close of 0.9172

With the timetable for talks getting ever-tighter, businesses from airports to the auto-industry still looking for clues on what a softer-than-previously envisaged Brexit will look like.

Meanwhile gloom over Britain's economic prospects continued to worry the markets, despite the surprise news yesterday that tax revenues last month outstripped spending by £200 million to create the first July surplus for 15 years.

Yet in the Eurozone, the latest IHS Markit surveys point to a continued recovery especially in manufacturing and particularly in France where the results were unexpectedly positive. The purchasing managers' index for the French manufacturing sector rose to 55.8 from 54.9 the previous month, well in advance of expectations and the fastest in more than six years.

In Germany, the manufacturing index, increased to 55.7 from 54.7 in July, instead of remaining flat as economists predicted.

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