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According to analysts at Deutsche Bank, we did get  a bit of a wakeup call yesterday was with the inflation data in the UK.

Key Quotes

“Indeed core CPI missed fairly materially (+1.9% yoy vs. +2.1% expected) and fell two-tenths from May, while headline CPI (0.0% mom vs. +0.2% and +2.4% yoy vs. +2.6% expected) also came in softer than what both the market and BoE expected.”

Sterling immediately dropped post the data and touched an intraday low of $1.301 (-0.80%)  before paring a bit of that to close at $1.3069, albeit still the lowest since last November.”

“A BoE rate hike next month was not quite a dead cert and that inflation data perhaps adds a bit of a curveball. That said other data in the UK has been fairly solid of late and the market continues to price in a slightly greater than 80% change of a hike next month.”

“Meanwhile the  core CPI print for the Euro area also came in on the softer side at +0.9% yoy, a one-tenth of a percent downward revision from the flash reading. However that masked what was really just a bit of rounding as the actual difference between the flash and final print was only 0.02%.”