UK Inflation Jumps and the Pound Barely Moves an Inch

UK inflation and sterling split as CPI rose to 3.5%, with the pound barely moving because strong jobs data had already priced in a rate hike. Fiona Cincotta, StoneX Senior Market Analyst, breaks down what is driving GBP/USD and EUR/GBP after the hotter UK inflation data. Services inflation rose to 3.7%, cementing market expectations of a Bank of England rate hike in November, while UK government borrowing ran above Office for Budget Responsibility forecasts ahead of the Budget. EUR/GBP has slipped to a 17-month low as Bank of England and European Central Bank expectations diverge, with the U.S. dollar near a three-week low. Discover Actionable Insights with the latest Market Outlook Reports: https://intel.stonex.com/offer?language=en&campaignId=A908C315-DC62-4F35-AC16-870BB71E84D1&utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_fiona_cincotta&utm_content=share 00:00 - UK Inflation at 11-Month High 00:28 - Fuel and Services Fire Up CPI 01:46 - BoE Hike Bets Priced In Early 02:38 - Borrowing Overshoot Hits Pound 03:53 - Soft Dollar, Sterling Breakout 05:30 - EUR/GBP Sinks as Policy Splits Like and subscribe for more financial market insights. #StoneX #FionaCincotta #GBPUSD #BankOfEngland --------- Like this video? Subscribe and turn on notifications so you don't miss any videos from StoneX: https://www.youtube.com/@stonex_official Visit https://www.stonex.com/en/insights/thought-leadership/?utm_source=youtube&utm_medium=social for insights, perspectives and thought leadership from StoneX's global network of experts. Visit our website: https://www.stonex.com?utm_source=youtube&utm_medium=social