Dear Reader,

Today's overview of economic news and market action

• It was another quiet day on financial markets yesterday, amid a light data schedule on both sides of the Atlantic
• On the currency front, the main FX pairs were confined to very narrow trading ranges yesterday
• However, sterling has been on the front foot in early trading today, following the release of UK CPI inflation for April
• Both the headline and core rate printed above the consensus
• The sterling reaction sees EUR/GBP changing hands down near the 85p mark
• Elsewhere, GBP/USD is up at the midpoint of the $1.27-1.28 range
• Looking to the remainder of today, the macro calendar remains muted

Data give comfort ahead of June ECB decision

With the market leaning towards a June rate cut, the latest inflation and wage data for the Eurozone suggest price pressure continues to ease in line with expectations, building the case for a shift in ECB policy at its next meeting. Friday’s Eurozone inflation release confirms the initial estimate of a 2.4% rise in consumer prices in April.