Investment Banks: UK inflation data is strong, and the pound may perform better than expected

Sina Financial News Data released on Wednesday showed that UK inflation unexpectedly rise and caused investors to drop expectations of interest rate cuts, and the pound continued to edge higher, and the pound may perform better than many analysts expected. ING FX analyst Turner said that ABN AMRO may soon have to downgrade its current forecast for EUR/GBP (to 0.88 later in the quarter and 0.90 later this year), which seems to be too aggressive for now. The inflation data led to a 20 basis point cut in UK interest rate cut expectations for 2024, supporting the pound across the board.