The drop overall in inflation was a little less than expected. The core CPI rate remained unchanged at 6.9% with services CPI YoY accelerating from 7.2% to 7.4%. The data will clearly add to the pricing probability of the BoE going by 50 bps rather than 25 bps in September but we doubt there will be a substantial shift in pricing at this juncture. 

Given we believe there are upside risks for the Dollar at the moment, we would play long GBP views versus the Euro for now, although like yields we doubt GBP will see notable gains following this CPI release.