GBP/USD - 1.5555.. Cable fell in tandem with eur/usd at Asian opening as st specs sold the pound on stop hunting, although price briefly dropped below y'day's 1.5552 low, short-covering quickly emerged n lifted price fm 1.5540. A mixture of bids n stops is reported at 1.5530/35 n offers have been lowered to 1.5580-00 area. No U.K. data is out but look for BOE Aug's meeting minutes at 08:30GMT, market expects the outcome of MPC to be 8 to 1 with Andrew Sentance being the usual die-hard hawk. Y'day's U.K. Jul y/y CPI which stood at 3.1% means that BOE Governor King will have to write to the new Chancellor to explain why inflation is abv the govt.'s upper 3% limit. Just to recap what King said last week, 'the overall outlook for the economy is weaker than in May, and if it is necessary to respond, then we are quite prepared to do that.'
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