UK June CPI dips to 2.6% YoY, easing BoE rate hike pressure, while Middle East tensions lift WTI crude to $86.70.
The British Pound steadies against the US Dollar at 1.3377 as softer UK inflation data reduces expectations for aggressive Bank of England tightening. June’s Consumer Price Index fell to 2.6% YoY from 2.8%, matching core CPI, which held steady at the same rate.
Traders still price in an 82% chance of a BoE rate hike by November 5, despite the relief in inflation pressures. Meanwhile, escalating US-Iran tensions in the Middle East push West Texas Intermediate crude up 2.5% to $86.70, nearing June’s $90 floor.
UK officials welcomed the inflation dip but warned of further action to ease living costs. US markets await Initial Jobless Claims data for the week ending July 18, with no major economic releases today.