Kit Juckes, Chief Global FX Strategist at Société Générale, analyzes GBP after UK CPI data and ahead of tomorrow's Bank of England (BoE) Interest Rate Decision.

Risk of a 50 bps rate hike tomorrow has increased

Sterling, has not been helped by this morning’s (high) CPI data.

The risk of a 50 basis points rate hike tomorrow has increased, and the risk of a deeper slowdown has increased even more. 

The EUR/GBP pair may have hit its low for the cycle now.

See: Sterling has limited upside potential on more data surprises – ING