Important week ahead for UK data

This is an important week for UK data and with the forward curve priced for close to zero risk of a rate hikebefore year-end, upside surprises would solicit a bigger market reaction than downside surprises. 

April CPI is out today. It will provide the first opportunity to crosscheck the Bank of England's recently revised forecasts, which now project a more subdued profile over the near term. 

"We see upside risk to the Bank's -0.1% y/y estimate for April CPI that was embedded in the latest Inflation Report; in particular, fuel price dynamics in our view signal a higher outturn (RBC: 0.1%y/y, cons 0.0%)", says RBC Capital Markets.