Trade photo

The lower CPI 'should' encourage the BOE to speed up rate cuts. And although Tuesday's US PPI data was lower than forecast, it hasn't altered the markets view of 'higher for longer US rates'.

It's a 30 pip stop loss with 45 pip profit target.

The risk to the trade is That is is perhaps 'gung ho' and potentially 'soft USD' trading in the lead up to CPI data.

I will manually close the trade before CPI to avoid holding risk into the event.

The other risk is the fact the market did like yesterday's data, which created a mild risk in environment. And there is a case to say a 'risk on' currency works be a better option Vs the GBP.