British pound makes a strong comeback: 3 major market signals hidden behind inflation data and the next move of the Bank of England.

Amidst the complex background of global economy, every fluctuation in the UK's inflation data has become the focus of the market's attention. The latest inflation report not only provides investors with a window into the UK's economic conditions, but also adds new uncertainty to the future trend of the British pound.

FX678 FinanceJun 19 07:11 ET

U.K. Inflation Data Could Boost Case For August Rate Cut But Future Outlook Unclear -- Market Talk

0859 GMT - U.K. annual headline inflation for May decelerated to 2%, a move that could solidify the case for an interest-rate cut by the Bank of England in August, XTB research director Kathleen Brook

WSJJun 19 04:59 ET

Bets of an August BOE Rate Cut Dashed by High Services Inflation

Traders pared bets that the Bank of England will ease monetary policy in the coming months after data showed services sector inflation remained higher than expected in May.

BNN BloombergJun 19 04:31 ET

U.K. Services Inflation Tops BOE Expectations, But August Cut Still in Play -- Market Talk

Despite falling headline U.K. inflation, it's services inflation that matters for the Bank of England and in May it came in higher than expected for the second-straight month, ING economist James Smith says in a note.

WSJJun 19 04:01 ET

Inflation Returns to Bank of England's Target for the First Time in Nearly Three Years

Inflation in the U.K. returned to the Bank of England's target for the first time in nearly three years, data that underscores the central bank will soon join other peers in beginning to reduce interest rates.

MarketWatchJun 19 03:56 ET

UK's CPI fell to 2% in May for the first time in three years, and service inflation exceeds expectations, shattering hopes for interest rate cuts.

Zhitong Finance app learned that the UK inflation rate has fallen to the Bank of England's target of 2% for the first time in nearly three years. However, for Prime Minister Sunak's political fate to improve before the upcoming election, this milestone event may be too late. The UK National Statistics Bureau said on Wednesday that the consumer price index (CPI) for May fell slightly from 2.3% last month. Although this should keep the central bank on the path of interest rate cuts later this year, inflation in the service sector remains high, which may cause policymakers to remain cautious when taking action. Although, these data will allow Sunak to announce the victory over the cruel life.

Zhitong FinanceJun 19 03:39 ET