Traders reduced slightly BoE easing bets despite the hot UK CPI report. The pricing fell from 53 bps of easing by year-end before the CPI release to 49 bps now. As mentioned here, traders reduced the probabilities for an August cut (which stands at 82% chance for a cut) but in the bigger picture, the base case was two rate cuts by year-end anyway, so even if they skip August, they will still have three meetings to cut.
This article was written by Giuseppe Dellamotta at www.forexlive.com.