Ella 
GBP/USD is weak below 1.3100.
UK inflation is expected to soften as producers cut prices at the factory gate.
The Bank of England is likely to keep raising rates as the 2% target remains elusive.
Sterling (GBP) fell as market participants were cautious ahead of the release of UK inflation data, with upside seemingly limited. The GBP/USD currency pair has struggled to find a key trigger point and has been oscillating around 1.3100. The current volatile squeeze is expected to erupt once inflation data is released on Wednesday. UK producer prices have eased recently, as has household demand for big-ticket items, but consumer inflation has proved more persistent than initially expected.
The fallout from higher UK inflation is spreading, and the fallout from lower sales of big-ticket goods and the housing sector is spreading to labor market conditions. Wages may not maintain a steady pace and the job creation process may slow as companies delay expansion plans to avoid higher interest payment obligations.
