ING analyst Chris Turner says Tuesday's data show the UK labor market remains
weak and wage pressures are contained, reducing the Bank of England's case for
further hikes this year and leaving sterling vulnerable to further declines.
LSEG money-market data still price about 60bps of BoE hikes next year; Turner
says that expectation should be gradually priced out over the next 3–6 months,
though energy prices will materially affect the timing. The Bank of England's
July inflation report is due Wednesday; a fall in services inflation would
further weakening the case for tightening. EUR/GBP was up 0.1% at 0.8556; ING sees
upside to 0.8570–0.8580.
