British Pound: Carry appeal keeps Sterling resilient as BoE stays on hold – ING
ING’s Chris Turner, citing UK economist James Smith, notes that July United Kingdom (UK) Consumer Price Index (CPI) had limited impact on EUR/GBP, with benign food inflation and only a modest uptick in the Bank of England’s core services measure to 3.8%.
ING's Chris Turner discusses the impact of the July UK Consumer Price Index (CPI) on EUR/GBP, citing that limited impact was observed. Food inflation remained benign, and the Bank of England's core services measure of inflation only slightly increased to 3.8%. Although the BoE may not need further interest rate hikes, this sentiment may not affect Sterling until later in the year.
ING believes that Sterling's low-volatility environment and strong carry appeal still contribute to its resilience, estimating EUR/GBP to hover around 0.8550.
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