BoE Credibility & French Double Dip

The BoE's inflation report came and went and so did the brief GBP rally after the report reiterated inflation will fall back closer to the Bank's 2% target in 2 years' time. But the BoE also raised the question about its own credibility for as long as CPI remains above 2%. EURUSD drops below 1.29 after France GDP remained in negative for the 2nd consecutive quarter and German Q1 GDP posted a weaker than expected +0.1% q/q following -0.7% in Q4. And with French CPI unexpectedly falling to 0.8% y/y from 1.1% y/y, expect more talk and hints of negative ECB rates. Risk aversion set in as USDCAD breaks 1.02. Last night's 6 new Premium trades on EURUSD, USDJPY and GBPUSD are in play, with 1 of 2 EURUSD nearing 1.2810 target from 1.2930 entry, both GBPUSD are in progress as does 1 of 2 USDJPY longs. Both CADJPY and 1 EURAUD also remain in progress as seen in the latest trades and charts in our Premium Insights.