UK July CPI +three.eight% vs +three.7% y/y anticipated

• Prior +three.6%
• Core CPI +three.eight% vs +three.7% y/y anticipated
• Prior +three.7%

UK inflation is available in hotter than anticipated and this may reaffirm the BOE sentiment to pause in September. That stated, markets had been pricing in ~94% odds of a pause already coming into at the moment. As such, any materials shifts in pricing can be slightly restricted. And meaning the scope for any sterling upside can also be more likely to be capped. GBP/USD is now flat at 1.3490 on the day with massive possibility expiries at 1.3500 in play as properly.

This text was written by Justin Low at investinglive.com.