GBP/USD: got a boost on highest inflation in two years - Scotiabank

Analysts at Scotiabank noted the latest fundamentals around sterling.

Key Quotes:

"Inflation data came in a little higher than expected in November, with the y/y inflation rate gaining from 0.9% to 1.2% (market 1.1%), the highest rate of inflation in two years. With US rates rising and domestic focus on prices, the UK markets are starting to wonder if the BoE’s next move is up. The data gave the GBP a boost today but it is way too early to think about higher rates as a multitude of uncertainties remain around the outlook post-Brexit. The BoE meets Thursday."