GBP: Services inflation sticky in June – ING

Source Fxstreet

This morning, the UK reported services inflation was unchanged at 4.7% in June, against expectations for a deceleration to 4.5%, ING's FX analyst Francesco Pesole notes.

Markets continue to price in two rate cuts by year-end

“Services inflation held steady, and actually, looking at some of the core services measures (which exclude different volatile/less relevant categories), most of these picked up a bit. Services CPI will probably bounce around these levels for the rest of the year, before coming dramatically lower next spring. A fair part of what's driving services inflation right now is chunky price rises that came through in April, most of which are inherently backwards-looking or regulated."

"These will drop out next year, which the Bank of England is well aware of. Still, this means the bar to cutting rates faster still feels fairly high – we expect cuts in August and November. But tomorrow's jobs numbers are key; if we see another bad payroll figure, that would put a lot of pressure on the Bank to shift in a more dovish direction.”

"Sterling is trading modestly stronger after the release. The risks associated with tomorrow’s jobs numbers are probably preventing any larger hawkish repricing in the Sonia curve and, by extension, keeping GBP gains contained. Markets continue to price in two rate cuts by year-end, but the recent tendency has been to explore more dovish pricing. A soft jobs print tomorrow should send EUR/GBP back above 0.870."

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Ripple’s $21 Trillion Dream: What Capturing 20% Of SWIFT Volume Means For XRPRipple Labs, a crypto payments company, continues to set its ambitions and those of XRP higher than ever as it edges closer to disrupting the global financial messaging giant SWIFT. After Ripple CEO
Author  NewsBTC
7 Month 14 Day Mon
Ripple Labs, a crypto payments company, continues to set its ambitions and those of XRP higher than ever as it edges closer to disrupting the global financial messaging giant SWIFT. After Ripple CEO
placeholder
Australian Dollar inches higher as China’s GDP rises in second quarterThe Australian Dollar (AUD) gains ground against the US Dollar (USD) on Tuesday, following China’s economic data.
Author  FXStreet
Yesterday 03: 43
The Australian Dollar (AUD) gains ground against the US Dollar (USD) on Tuesday, following China’s economic data.
placeholder
Bitcoin Profit-Taking Spikes Without Price Drop – Strong Demand Or Delayed Reaction?Bitcoin’s (BTC) on-chain activity has accelerated over the past few days, with the leading cryptocurrency by market cap hitting successive new all-time highs (ATHs). As a result, several metrics
Author  NewsBTC
9 hours ago
Bitcoin’s (BTC) on-chain activity has accelerated over the past few days, with the leading cryptocurrency by market cap hitting successive new all-time highs (ATHs). As a result, several metrics
placeholder
XRP Price Eyes Fresh Gains: Traders Bullish After Momentum SpikeXRP price started a fresh increase and traded above the $3.00 zone. The price is now correcting gains and might find bids near the $2.840 support zone. XRP price started a fresh increase above the
Author  NewsBTC
9 hours ago
XRP price started a fresh increase and traded above the $3.00 zone. The price is now correcting gains and might find bids near the $2.840 support zone. XRP price started a fresh increase above the
placeholder
Gold price advances to $3,335 area; lacks bullish conviction amid reduced Fed rate cut betsGold price (XAU/USD) edges higher during the Asian session on Wednesday and reverses a part of the overnight downfall to a multi-day low, though it lacks follow-through buying.
Author  FXStreet
8 hours ago
Gold price (XAU/USD) edges higher during the Asian session on Wednesday and reverses a part of the overnight downfall to a multi-day low, though it lacks follow-through buying.
Related Instrument
goTop
quote