CPIH y/y comes in at 2.8% against 2.9% consensus

The UK’s CPIH y/y for July came in at 2.8%, according to data released today. This figure was below the consensus expectation of 2.9% and marked a decrease from the previous reading of 3.0%. The actual print represented a -3.4% surprise when compared to the market consensus.

Following the release, the British Pound saw varied initial reactions across major pairs. GBPUSD moved up 7.2 pips within 5 minutes, settling at a 3.0 pip gain after 15 minutes. GBPAUD gained 3.5 pips initially, then was up 0.9 pips after 15 minutes. GBPCAD saw an initial rise of 5.9 pips, then was up 1.7 pips after 15 minutes. GBPJPY climbed 11 pips in the first 5 minutes, then was up 3.7 pips after 15 minutes. GBPNZD also rose 11 pips initially, then was up 4.5 pips after 15 minutes. EURGBP initially dipped 1.9 pips, then returned to 0.0 pips after 15 minutes. GBPCHF gained 2.8 pips initially, then was down 0.5 pips after 15 minutes. These initial moves were generally small when compared to the median 1-hour moves observed after past releases, which typically range from 11 pips for EURGBP to 21 pips for GBPNZD and GBPCAD.