GBP suffering a double whammy - Scotiabank

Analysts at Scotiabank explained that sterling is suffering the double whammy of a stronger USD and weaker than expected UK CPI data for Jul. 

Key Quotes:

"Markets had expected both the core and headline price indices to advance modestly from Jun’s readings and while inflation remains well above the BoE’s 2% target, this morning’s results, showing core and headline CPI steady relative to the prior month (2.4% and 2.6% Y/Y respectively) and the headline rate down 0.1% in M/M terms suggests the recent track up in prices has stalled, for now at least, suggesting even less ammunition for the BoE rate hawks to argue their case."