U.K. inflation cools more than expected in June

GBP/USD slumped 0.7% to 1.2945 after British annual consumer price inflation fell to 7.9% in June, from May’s 8.7%, and below the expected 8.2%.

While the country’s CPI is moving further away from October’s 41-year high of 11.1%, it still remains far above the Bank of England‘s 2% target, and the market has still priced in a further 100 basis points of hikes this year.