GBP/USD risks coming down to the 1.2590/2610 area on the back of the stronger Dollar – ING

The UK releases two important data sets this week. Economists at ING analyze GBP outlook ahead of employment and prices figures.

Services inflation to surprise on the downside and dent expectations for a further 50 bps tightening 

Tuesday's release of the jobs data should continue to show average earnings coming in on the high side at 7%+ year-on-year. Sterling may have more trouble with Wednesday's July CPI data. Here, we expect services inflation to surprise on the downside and dent expectations for a further 50 bps tightening from the Bank of England.

GBP/USD risks coming down to the 1.2590/2610 area today on the back of the stronger Dollar.