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Only minimal impact on the pound - as expected with a downside surprise

UK DATA

Despite the 0.2ppt downward surprise to CPI, there has only been a 10 pip move lower in GBPUSD. We had noted ahead of the release that we would see a much smaller reaction to a downside print than an upside print as inflation is still expected to pick up later this year and today's print has been dragged lower by 0.2ppt by base effects.

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