EUR/GBP, GBP/USD flows: BoE TSC cementing summer re-pricing

BoE TSC testimony to date tending to cement the re-pricing of seemingly premature summer tightening expectations. June is now almost fully no change (82%), and July is shifting more to 60-40 pricing, which may still be too much. BoE's Bailey say financial repricing gives the BoE time to assess - an argument that can be recursive of course if it sees hikes priced out, but nonetheless does still play to that wait and see stance. 

Adds that have a softening picture for growth and the labour market, today's food prices surprisingly benign, and they see a gradual reduction in private sector wage settlements. 

Breeden also notes anecdotal impression that businesses are not replacing staff turnover - good for productivity, bad for entry jobs and leaves the hike scenario as conditional (prolonged conflict with second round effects). 

Only Mann seems hawkish suggesting no broad based labour weakness and being concerned about inflation late 2026 being embedded in 2027 wage expectations. 

While all largely with the grain of the market's adjustment on summer pricing, GBP not really taking too much further note, continuing to consolidate the political driven action (namely, recent day's more dominant short covering in the wider ranges after event positions took profit and further cut on the benign reports on Burnham retaining fiscal rules) .