Important events today:

12:30 UTC – US: number of new foundations laid.

The UK’s Office for National Statistics has provided fresh inflation data – overall inflation remained unchanged at 6.7%, while core inflation fell by 0.1pc to 6.1%. In general, such data will not be able to force the Bank of England to raise interest rates at the next meeting on 2 November. The British regulator fears a crisis in the financial sector and is not ready to raise rates, so it needs to see core inflation rise to change its mind, and the core consumer price index is gradually declining, so the Central Bank will wait and hope for a chance.

Geopolitical tensions in the Middle East are pushing up oil prices, which may provide localised support for the Pound as the assets are historically well correlated. An explosion at a hospital in the Gaza Strip killed hundreds of people. As a result, the leaders of Jordan, Egypt and the Palestinian Authority cancelled the meeting even before Airforce One with Biden on board managed to land in Israel. Against this background, it is hard to imagine that the diplomatic efforts of the US President will suddenly succeed.

Recommendations: flat at 1.2150 -1.2250.