GBP/USD trades sideways as important UK inflation data looms

At 6am the UK will release its latest monthly inflation reports for August. The markets expect a marked increase in both Consumer prices (CPI) and retail prices (RPI) last month. CPI is expected to be running at 0.7% from a fall in July of 0.4%. It is a similar story for RPI, which is forecast to have risen by 0.9% compared to a prior fall of 0.6%. The annualised readings for both are expected to have increased too, to 7% for CPI, from 6.8% and to 9.3% from 9% for RPI. As to how much they do change is what will have an impact on the pound this morning. The GBP/USD has been trading mostly sideways since the US close last night, where it ended the session at 1.2392. The range since then has been so far covered by 1.2383 to 1.2397. This inflation data today is important, as it could determine whether or not this week might be the last hike from the BOE for a while, or not. So, please expect some price action in the pound a little later this morning, when this data hits the screens. The GBP/USD is just now trading at 1.2391