Important events today.

The National Statistics Office has provided a fresh release on inflation in Britain for June. Overall inflation fell by 0.8 p.p. to 7.9%, while core inflation, which excludes food and energy prices, fell by 0.2 p.p. to 6.9%. The Bank of England rate futures reacted lightning fast – traders now do not expect a 0.5% increase in interest rates at the next meeting on August 3, but believe that the regulator will increase the rate by 0.25%.

This is a negative signal for the pound, as the US Fed will raise the interest rate to 5.5% next week, while Britain will have a rate of 5.25% in August. If earlier investors believed that the British regulator in the second half of the year will aggressively raise interest rates and on this background bought up the pound, now the market is disappointed and closing positions.

Recommendations: Sell 1.2974/1.3010 and TP 1.2903.