But it isn't going to change anything, it's all about Brexit for the pound
Just be aware that the labour market report was released 12 minutes earlier yesterday (one of our readers noted it was as early as 24 minutes even) on most sources, so be mindful that something similar could happen with this release here.
But either way, it isn't going to make much of a difference for the pound. Inflation can print +3.0% y/y and it wouldn't matter. It's all about Brexit now, economic data is secondary at this point in time.
Expectation for the release here is for inflationary pressures to hold steady with headline inflation to record +1.8% y/y while core inflation is expected at +1.9% y/y, both similar to the readings in January.
Regardless of a miss/beat, the pound is weighed lower today as a result of Brexit uncertainty and that will still continue in the near-term until further clarity is found on the situation. There is support for cable around 1.3216 but light bids and further support is then seen at 1.3185-00.
The 200-hour MA is also lurking nearby at 1.3191 so expect that to also be a key area of interest if price breaks to the downside. As for reactions to the CPI data release here, I would expect price action to stay muted in any event.
