GBP edged higher over the U.K. CPI release, with Cable trading up to 1.6318 after June CPI slipped to 1.8% y/y and the RPI came in at -1.6% y/y. Cable pulled back in to 1.6280 after running out of steam ahead of 1.6330 offers, while EUR-GBP traded between 0.8582 and 0.8602. GBP should remain supported amid an improvement in risk appetite today ahead of today's key earnings reports out of the U.S. Elsewhere, BoE MPC member designate Posen offered an upbeat assessment, stating that the U.K. has been more forthright in dealing with the downturn, adding that he was reasonably confident that the downturn will be overcome and would be surprised not to have positive growth by 2010, possibly earlier.
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