UK Shop Price inflation eases to 1.0%y/y in July, lowest level sine November 2009, from 1.1% in June. UK Shop price inflation lowest in 2-years. On FX, GBP/USD looking offered yesterday, on month end demand for EUR/GBP. EUR/GBP at 0.7844-49, GBP/USD at 1.5670-73, little reaction to the UK Shop price data.
Focus turns to Fed FOMC decision later today, and then start of 2-day BoE MPC. BoE and ECB decisions on Thursday, no change for BoE seen, though GBP weighed by Moody’s comments on UK, and negative rating outlook.
GBP/USD offers at 1.5700, bids at 1.5640-50 now, with stoploss below 1.5620/1.5600. EUR/GBP hit highs of 0.78649 yest, now at 0.7845-46, interest to sell on rallies for break of 0.7800 again on eurozone concerns, with focus on ECB measures.