GBP/USD still under pressure for now even as BOE still expected to act

To provide you with some detail on those UK inflation numbers released earlier this morning, the rise in UK prices was below forecasts, but still well above what we saw in July, on the monthly data. The data also revealed that annualised UK CPI rose at a pace of 6.7%. That was actually below the 6.8% rate seen in July and below the 7% that was forecast. The annualised RPI data was also lower than forecast, at 9.1%, but above the 9% pace in July. The upshot of this data might have swayed the BOE from raising rates according to some pundits, but the BOE know that prices will most likely be higher in the September numbers, given the recent jump in oil prices. So, whilst the reaction in the pound and the FTSE 100 might have been about relief as much as anything else, the majority of pundits still expect the BOE to raise rates tomorrow. Currently that expectation is running at around 74%. So, what does that mean for the pound then? Well, its under pressure right now, but it might get a lift tomorrow if the BOE does act and more importantly, does not call the top of the tightening cycle. The GBP/USD is just now at 1.2352