• Sterling rose 0.4%, holding post-U.S. CPI gains before Fed events

• UK inflation also backed off, but services held 30-yr high nL8N334153

• Fed terminal rate trimmed to 4.8% from recent 5%+, end 2023 at 4.3%

• BoE seen hiking another 165bp to 4.58% by Sept, dip to 4.46% by Dec

• BoE facing stiffer inflation fight and increased worker strikes

• BoE now priced above Fed rate end-2023, thus focus Wed on Fed's dot-plots

• Prices up against 55-WMA at 1.2456 versus Tues's 1.2443 6-mo high

• US stocks firmer, hurting haven USD, helping risk-driven pound

• But market on hold until Fed update and Powell presser this afternoon

• Pair a bit overbought, but specs still net short and May highs eyed

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