GBP:
The Pound struggled during yesterday’s session after the UK’s inflation eased
more than expected in July after hitting a five-month high in June. Consumer
prices rose 1.6 percent on the year in July the Office for National Statistics
said, economists had expected inflation to fall to 1.8 percent. Separate data
from the ONS showed house prices in Britain had started to moderate, adding to
signs from other surveys that the rapid pace of house price growth is starting
to calm.

GBP:
The Pound struggled during yesterday’s session after the UK’s inflation eased
more than expected in July after hitting a five-month high in June. Consumer
prices rose 1.6 percent on the year in July the Office for National Statistics
said, economists had expected inflation to fall to 1.8 percent. Separate data
from the ONS showed house prices in Britain had started to moderate, adding to
signs from other surveys that the rapid pace of house price growth is starting
to calm.

Consumer price inflation is expected to float below the official target of 2%
until the third quarter of 2017, according to Bank of England’s (BoE) August
Inflation Report medium-term forecasts.

USD:
Official figures from the US revealed home construction rebounded in July and
the cost of living rose at a slower pace, showing a strengthening U.S. economy
has yet to generate a sustained pick-up in inflation. A 15.7 percent jump took
housing starts to a 1.09 million annualized rate, the strongest since November
due to an improving job market and cheaper borrowing costs.

As inflation continues to run below the Federal Reserve’s target, it gives
the central bank room to keep interest rates low well after the projected end
of its bond-buying program in October.

Key Announcements:

09:30 BST – GBP – MPC Asset Purchase Facility Votes

09:30 BST – GBP – MPC Official Bank Rate Votes

19:00 BST – USD – FOMC Meeting Minutes

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