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Investors turning their attention to inflation and QE

After it was initially pushed higher euro pulled back during the European part of the session and is currently being traded around 1.1340 level. There are no major data releases from the Eurozone today, so we can expect steadier rest of the session too. Concerns about Greek 4-month bailout have started to fade away though ECB President Mario Draghi has highlighted the fragility of the accord reached between Greece and its creditors in a letter to Eurogroup head Jeroen Dijsselbloem. Read more...

Forbes said that next likely move will be an increase in interest rates

Bank of England policy maker Kristin Forbes said the economic outlook means officials should look through current weak inflation and that the next likely move will be an increase in interest rates. “The primary reasons for low inflation today are external factors that will fade quickly,” Forbes said. “Inflation will then most likely bounce back.

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BoE sees raise in inflation in 2016

Besides good job figures Sterling was supported by BoE Meeting Minutes and opinion on inflation raise in 2016.“Absent further such movements in commodity prices or sterling, the effects of these factors on 12-month CPI would dissipate towards the end of 2015, causing inflation to pick up towards the target fairly sharply,” it said. 
 
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BoE - negative rates likely at the moment

There are no data releases from the UK today. Sterling still remains higher influenced by last week's BoE Inflation Report. Bank of England policy makers Ben Broadbent and Martin Weale said weak U.K. inflation will be temporary and indicated that the chance of more stimulus remains low
 
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