XE Market Analysis: Europe – Aug 19, 2020

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The pound has printed a fresh trend high against the dollar, at 1.3268, which is the loftiest level since December. The catalyst was much warmer than anticipated UK July inflation data, with headline CPI rising to a rate of 1.0% y/y from 0.6% y/y and with core CPI spike to a rate of 1.8% y/y from 1.5% y/y. The respective median forecasts had been for 0.6% and 1.3%, so a clear case of being wrong-footed. Elsewhere in the currency world, the dollar has largely managed to find a toehold after printing fresh trend lows against many currencies yesterday.