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Sterling downtrend likely to continue – Commerzbank

The British Pound has come under new depreciation pressures in recent days. Commerzbank economists analyze the outlook for the GBP.

When will we finally see a drop in inflation?

August inflation data will be published on Wednesday. The Bloomberg consensus expects the inflation rate to rise, possibly even to 7% or more. And anyway, the underlying rate has been quite stubborn for some time. When will we finally see a drop in inflation? The latest data on salary growth leaves room for doubts in this regard. Just like previous inflation releases, which often surprised on the upside.

Therefore, if Wednesday’s inflation data meets or even exceeds expectations, and the BoE is dovish on Thursday, the GBP’s bearish trend is likely to continue.

Source: Fx Street

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