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GBP/USD churns below 1.27 ahead of UK CPI inflation print

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GBP/USD spun in circles on Tuesday as BoE gets caught in headlights.

UK CPI inflation print due on Wednesday alongside hefty data dump.

US data remains thin, giving Cable traders brief time in the spotlight.

GBP/USD churned chart paper just south of 1.2700 on Tuesday as Cable traders brace for a decently-sized UK data dump due on Wednesday, headlined by UK Consumer Price Index (CPI) inflation figures for October. US economic data takes a reprieve on Wednesday, leaving Cable markets the floorspace to focus on data that might tilt the Bank of England (BoE) toward or away from further rate cuts this year.


The BoE put on a measured stance during its Monetary Policy Report Hearings on Tuesday, noting that interest rates are “moderately restrictive”, causing rate traders to price in less than 20% odds of another rate cut from the UK’s central bank this year.


Headline UK CPI inflation is expected to accelerate to 2.2% YoY in October from 1.7% the month before, while October’s MoM CPI figure is forecast to rise to 0.5% from a flat 0.0%. Core UK CPI inflation is still expected to chill further to 3.1% to 3.2% YoY.


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