ForexLive European FX news wrap: Pound slides as UK inflation eases a little

<p>Headlines:</p><ul><li><a href="https://www.forexlive.com/news/uk-june-cpi-79-vs-82-yy-expected-20230719/">UK June CPI +7.9% vs +8.2% y/y expected</a></li><li><a href="https://www.forexlive.com/news/sterling-falls-on-softer-uk-inflation-numbers-20230719/">Sterling falls on softer UK inflation numbers</a></li><li><a href="https://www.forexlive.com/news/uk-bond-yields-sharply-lower-after-inflation-data-earlier-20230719/">UK bond yields sharply lower after inflation data earlier</a></li><li><a href="https://www.forexlive.com/news/boe-watch-a-25-bps-rate-hike-is-now-more-favoured-in-august-20230719/">BOE watch: A 25 bps rate hike is now more favoured in August</a></li><li><a href="https://www.forexlive.com/news/usdjpy-moves-towards-14000-as-ueda-casts-doubts-on-imminent-policy-tweak-20230719/">USD/JPY moves towards 140.00 as Ueda casts doubts on imminent policy tweak</a></li><li><a href="https://www.forexlive.com/news/aussie-holds-lower-on-softer-chinese-yuan-today-20230719/">Aussie holds lower on softer Chinese yuan today</a></li><li><a href="https://www.forexlive.com/news/eurozone-june-final-cpi-55-vs-55-yy-prelim-20230719/">Eurozone June final CPI +5.5% vs +5.5% y/y prelim</a></li><li><a href="https://www.forexlive.com/news/us-mba-mortgage-applications-we-14-july-11-vs-09-prior-20230719/">US MBA mortgage applications w.e. 14 July +1.1% vs +0.9% prior</a></li></ul><p>Markets:</p><ul><li>USD leads, GBP lags on the day</li><li>European equities higher; S&amp;P 500 futures flat</li><li>US 10-year yields down 2.9 bps to 3.760%</li><li>Gold down 0.3% to $1,973.18</li><li>WTI crude up 0.2% to $75.88</li><li>Bitcoin up 0.8% to $30,018</li></ul><p>UK inflation was the highlight of the session and it didn't disappoint, or at least unless you are a sterling bull. The numbers pointed to an easing in price pressures for June, which sent the pound and UK yields lower on the day.</p><p>Markets worked to reprice the more hawkish BOE rate outlook, with a 25 bps rate hike now preferred over a 50 bps move for August. GBP/USD fell sharply from 1.3030 to 1.2905 and is holding near the lows now, with a firmer dollar also helping to keep the downside pressure on the pair.</p><p>There were several other decent movers on the session but they all owed much to separate factors.</p><p>USD/JPY pushed higher towards 140.00 from around 139.30, helped by the more dovish remarks by BOJ governor Ueda from yesterday. Meanwhile, the antipodean currencies are marked lower due to a softer Chinese yuan on the day. AUD/USD is down 0.7% to 0.6765 after having seen USD/CNY push up from 7.18 to near 7.22 in trading today.</p><p>In other markets, equities kept steadier across the board after the gains from yesterday while bond yields are generally lower – with UK yields leading the downside push after the softer inflation numbers.</p>

This article was written by Justin Low at www.forexlive.com.