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Hardy: Sterling shows strength after solid CPI print

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Sterling is up after CPI figures for July proved robust, coming in at 1.2%. It shows core inflation is rising faster than expected. 

Saxo's John Hardy looks at which currency pairs should be the focus - GBPUSD or EURGBP. He admits that Cable may not be the most interesting trade.

There maybe a dragon around the corner for Sterling though, warns John. The Chinese currency devaluation could affect future UK inflation. Incoming data also needs to be strong in order to help the pound, he says.