GBP Already Eyeing BoE Inflation Report

Currencies & bond yields are little changed after Fed Chairwoman Yellen's speech balanced the positives of expecting higher 2014 growth and the negatives of expressing concern with downside risks to inflation. As GBPUSD nears $1.70 for the first time in 5 years, we issue our latest GBP Premium trades with the single chart highlighting the reason to GBP outperformance since late last summer via real 2-year yields and currency performance vs gold for GBP, EUR, USD and JPY. Tomorrow's Bank of England announcement is of the first MPC meeting following the unemployment rate's decline below the 7.0% formerly used as a forward guidance threshold for higher rates. No change is expected tomorrow but look out from any released statements. And let's not forget next week's employment report and the quarterly BoE inflation report (1-day after), which will shed some hawkish light on the notable improvement in labour markets even if inflation remains low and slack is considerable. it Our Premium service had been issuing GBPUSD longs since late June.