 British Pound faced broad selloff today, continuing its decline in response to comments made last Friday by BoE Deputy Governor Dave Ramsden. Ramsden expressed he is now much less worried about inflation, and expects upcoming data to show significant slowdown in April. More importantly, he emphasized that UK inflation trends are likely to realign more closely with Eurozone rather than with the US. The comments now set some expectation, contingent on April CPI data, monetary policy easing by BoE preceding similar moves by Fed and following ECB. This would place the August BoE meeting squarely in focus as a possible juncture for the initial rate cut. Elsewhere in the currency markets, Euro is trailing as the second worst by some distance. Commodity currencies remain in pole position, supported by the strong rebound in risk sentiment, as seen in major European stock indexes and US futures. Dollar, Swiss Franc and Yen are trading in middle positions, bounded in tight range against each other. Attention in the currency markets is now turning to forthcoming PMI data from Australia, Japan, the Eurozone, the UK, and the US, which is expected to provide further direction... |
