FXStreet (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ, remarks the solid tone from the GBP.
"To see how data and changed forward guidance can alter currency performance we just need to look at the UK. The pound remains on a strengthening path fuelled by the higher than expected inflation print yesterday."
"Still, the BOE expected a Q2 CPI annual rate of 1.8% and the actual rate was 1.73%, so the BOE is perhaps not overly concerned. We get the jobs data today and soft wage data may help contain further pound gains. However, the wage picture is likely to change and we still expect the pound to out-perform ahead of the first BOE rate increase in November."