• UK and US inflation figures are due Tuesday at 8:30 and 12:30 GMT, respectively
• Rate speculation is a key fundamental driver for both the Pound and US Dollar
• Inflation pressures are the critical ingredient needed for a rate hike, whether for BoE or the Fed
Find out what live events and webinars besides the UK and US CPI release are scheduled this week with the DailyFX Live Webinar Calendar!
Fundamental event risk that changed the UK rate forecast last week prompted the biggest GBPUSD drop in 7 months. Can key data from both sides of the pair leverage a bigger move today? Scheduled for release Tuesday are sets of UK and US inflation data. These figures will tap directly into a key theme for both the British Pound. This is particularly true for GBPUSD which minimizes other fundamental considerations to further amplify the importance of rate spectulation on a relative basis. In today's Strategy Video, we look more closely at the market's expectations going in, the scenarios for the outcomes and what pairs are better positioned to respond.
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