The Bank of England left rates unchanged yesterday and slashed growth projections, the GBP retreated across the board and hit its lowest in these last 4 months. The british central bank lowerly revised its growth and inflation outlook for 2018 and 2019.

Headline US inflation data (Y/Y) for the month of April was out at 2.5%, in line with expectations, while core inflation data for the same period was out at 2.1%, marginally lower than expected. The tepid inflation data refelected into a softer US dollar yesterday with the US dollar index slipping below recent 4 ½ month highs.

In the meantime the euro enjoyed a bit of a comeback throughout yesterday’s session as it pushed the EURUSD higher to session highs of 1.1946. The euro got a breather after recent concerns surrounding not only the political stalemate that has so far characterised Italy, but also because there appeared to be a possible coalition between two parties with some hostilities towards the EU.

Later today and ahead of the weeken we are expecting canadian unemployment figures, and ECB President Mario Draghi is expected to speak in Florence.