The Dollar has started the week on a strong note, appreciating against most currencies and in particular the high-yielders (South African Rand, Mexican Peso and Indian Rupee). Only Sterling has managed to slightly outperform the Dollar as markets gear up to this Thursday’s Bank of England (BoE) policy meeting. But GBP/USD ultimately remains near a three-month low with markets having almost fully discounted the probability of a BoE rate hike this week. The Swiss Franc has weakened further against the majors following the release of data showing that CPI-inflation remained at only 0.8% yoy in April and suggesting that the Swiss National Bank may be in no hurry to tighten monetary policy.
