- Sterling has limited upside potential on more data surprises – ING
Market news
21 June 2023
Sterling has limited upside potential on more data surprises – ING
Another inflation surprise in the UK. Economists at ING analyze Sterling outlook after CPI data.
Another inflation surprise
Core CPI unexpectedly rose from 6.8% to 7.1%, while the headline rate was unchanged at 8.7% despite consensus expecting a decline to 8.4%.
The FX impact of the CPI surprise was interesting. Sterling jumped but then rapidly erased gains: this probably signals how the room for a further hawkish repricing in the Sonia curve is limited and so are the positive implications for Sterling of more data surprises.
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