ING analyst Chris Turner says Tuesday's data show the UK labour 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 W

ING analyst Chris Turner says Tuesday's data show the UK labour 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 weaken the case for tightening. EUR/GBP was up 0.1% at 0.8556; ING sees upside to 0.8570–0.8580.