The British pound is covering some of the yesterday’s losses early in the morning, before the U.K. CPI report. U.S. dollar traders relieved from the less than expected damage from the Hurricane Irma, while North Korea didn’t launch any missile during the weekend.
Sterling Is Picking Up Ahead of U.K. CPI Report
Sterling has been traded slightly higher against most of the G10 currencies on Monday and early Tuesday ahead of the publication of the U.K. CPI report and few days before the Bank of England policy meeting. The headline inflation rate is expected to pick up further to 2.8% in August versus 2.6% in July, while the core inflation rate is predicted to edge higher to 2.5% year-over-year from 2.4% the prior month. From our point of view, the CPI figure will not impact the policymakers’ decision on Thursday, which is widely expected to leave the monetary policy unchanged.
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