GBP traders – eyes on UK inflation data due Wednesday – preview

<p>Justin posted a comprehensive preview of the UK CPI data to come for June here:</p><ul><li><a href="https://www.forexlive.com/news/will-uk-inflation-data-give-sterling-another-boost-this-week-20230718/" target="_blank" rel="follow"> the BOE and the pound, another hot set of inflation numbers this week is going to keep the fire alive on more hawkish expectations</a></li></ul><p>Adding in some snippets from about the place.</p><p>TD:</p><ul><li>Base effects and another decline in petrol prices will likely pull down headline inflation to 8.1% YoY – just 0.2ppts above the MPC's forecast. That said, we expect core inflation to remain at 7.1% YoY due to continued elevated services momentum. </li><li>A material surprise on this release will determine the size of August's Bank Rate hike.</li></ul><p>Scotia expects that UK core CPI inflation is expected to remain near the highest reading since the early 1990s.</p><p>Westpac:</p><ul><li>CPI inflation in June should remain elevated as core spending remains strong supporting the case for strong monetary action ahead. </li></ul><p>Deutsche Bank have an eye on a bigger impact:</p><ul><li>UK inflation on Wednesday has the potential to be a global bond mover given recent prints</li></ul><p>The data is due at 0600 GMT, which 7am in London and 0200 US Eastern time. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.