The UK will release inflation data at 11:30 MT time on July 18. The Bank of England’s officials closely watch these figures before making their monetary policy decisions.
At the last meeting, some of them voted for raising rates only because they want to offset the rapidly growing inflation rates. In the past months, inflation accelerated faster than it was projected and is now well above the target rate. This is why the upcoming release will be very important for the GBP valuation. An upbeat release will confirm the uptrend in consumer prices and support the pound, as traders will see it as a reason for the British central bank to raise rates. A lower reading, on the contrary, will allow the Bank of England to keep the rates unchanged and hurt the sterling.