UK CPI figures for August due shortly, although traders are still digesting the shock US print from yesterday.
While the surprise to the upside inspired a sharp rally for the US Dollar, the market is already looking for UK inflation to continue higher, and with the BOE anticipating CPI as high 13% in October, there is also an expectation for a more aggressive 75bps rate hike next week. However, this has failed to prevent GBP/USD form trending lower, with the central bank themselves forecasting a recession beginning in Q4.
Will a strong inflation reading from the UK help GBP pare yesterday’s losses against the greenback, or is the pair on track to continue pushing lower?
Check out this article for a deeper insight into GBP/USD and how the market could react: