GBP/USD might be waiting on UK inflation data tomorrow?

The latest UK CPI and RPI inflation reports will be released at 6am GMT tomorrow. This is important data and especially so right now. Many in the markets expect the next move for UK interest rates to deliver a reduction in the current 5.25% base rate. At the same time, some leading Bank of England MPC voters have expressed caution on that. The latest of those was the BOE chief economist, Huw Pill just last week. That outlook has no doubt helped to support the Pound outside of the weaker dollar dynamic and delivered the move close to the 1.30 handle we are seeing unfold right now. At the same time, the markets are expecting lower inflation readings tomorrow morning. The forecast is for Consumer Prices (CPI) to drop back below 2% in June. A fall to 1.9% is the median forecast on an annualised basis. Core annualised prices remain stubbornly high though and still above 3%. The markets anticipate a drop to 3.4%, from 3.5% tomorrow. If that does not materialise, then the markets will continue to push back on the prospect of a rate cut at the next BOE meeting on August 1. If that is the case, then it could be the catalyst that further underpins the current wave higher and takes the GBP/USD above 1.30, assuming it might not happen beforehand today. The GBP/USD is currently trading at 1.2985