High UK inflation boosts pound - UBS

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Córdoba) - The UBS analyst team noted that solid inflation figures should eventually lead to central bank action even though Carney moderated such expectations on Tuesday.



Key Quotes



“High inflation boosted the value of the pound on Tuesday. In June core CPI rose by 1.9% yoy against expectations of 1.6%. A separate statistic showed that London area house prices rose by a record 20% yoy”.



“The recovery of consumer and house prices is much quicker than many expected and should eventually lead to central bank action, even though Mark Carney, the head of the BoE, moderated such expectations on Tuesday”.



“GBP/CHF has risen by more than one big figure from 1.52 to well above 1.53”.



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