Case For QE Fading -BNP Paribas

The case for QE is fading says BNP Paribas and that should be supportive for GBP. Currency strategists at the French bank cite the BOE's QIR as saying that the risk of inflation being below the 2% target in two years was broadly balanced. That means the argument for further QE in May is fading unless the economic data were to weaken. "All in all, the Inflation Report is supportive for sterling, especially if the ECB and Fed point towards easing policy further over the months ahead," the bank adds. GBP/USD is now at 1.5706.