The British Pound is facing comparisons with Britain’s 1976 currency crisis as economists warn of a dangerous mix of high inflation, weak growth and fiscal stress.
However, gains are tepid and likely reflect news that "employment was again a weak spot".
UK inflation beat analyst expectations in July, negating the odds of another interest rate cut in 2025.
Analysts at NatWest see the Pound being supported by the Bank of England's policy shift and think bond market pressures should remain contained.