The downtrend in Sterling is likely to continue – Commerzbank

FXStreet Insights Team FXStreet

Sterling came under further depreciation pressure over the past few days. Economists at Commerzbank analyze GBP outlook.

When will we finally see a fall in inflation?

Inflation data for August is due for publication on Wednesday. Bloomberg consensus expects a rise in the rate of inflation, possibly even back to 7% or above. And the core rate has been quite stubborn for some time anyway. So when will we finally see a fall in inflation? The recent data on wage growth leaves room for doubt on that front. Just like past inflation publications that frequently surprised to the upside.

So should Wednesday’s inflation data be in line with expectations or even above, with the BoE sounding dovish on Thursday the downtrend in Sterling is likely to continue.

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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