According to Jinshi Data, the focus of the UK market is on the CPI data for June to be released tomorrow. The overall CPI in June is expected to drop slightly to 1.9% year-on-year from 2% in May, while the core CPI will also drop to 3.4% year-on-year from 3.5% in May.
Barclays Bank said that as UK inflation continues to slow, the Bank of England may start cutting interest rates in August, but due to the strong economic outlook, this move is unlikely to have any impact on the pound. The pound is expected to remain strong and the directional view of the pound will continue to be bullish.
