Sterling dips after tame inflation data
Aug 14 (Reuters) -Sterling dipped on Wednesday after a softer-than-expected reading on British consumer price inflation supported expectations of further interest rate cuts from the Bank of England (BoE) this year.
The pound GBP=D3 fell 0.3% to $1.2824, heading for its first session of decline in five against the dollar. Euro/sterling EURGBP=D3 picked up steam, trading up 0.3% at 85.70 pence.
Consumer price inflation rose to 2.2% in July after two months at the BoE's 2% target, official figures showed, but fell short of economists forecast for an annual rise to 2.3%.
Services price inflation fell to 5.2% in July from June's 5.7%, lower than the Reuters poll forecast of 5.5% and the lowest since June 2022.
Traders are currently pricing in rate cuts of 45.61 basis points from the BoE this year versus 44.6 bps seen on Tuesday.
Graphic: World FX rates in 2023 http://tmsnrt.rs/2egbfVh
Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv
Reporting by Sruthi Shankar in Bengaluru, editing by Alun John
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