Sterling remains the strongest major currency this week as the post election rally continues. The pound also maintained momentum after the rather uneventful BoE rate decision yesterday. Some economic data will be released UK today. BRC sales monitor dropped -2.4% yoy in April. Industrial production is expected to rise 0.1% mom, 0.2% yoy in March while manufacturing production is expected to rise 0.3% mom, 1.0% yoy. NIESR GDP estimate will also be released. Reactions to these data will likely be muted and Sterling would stay firm ahead of the BoE inflation report to be released tomorrow.
Technically, EUR/GBP's rebound from 0.7013 should have completed at 0.7482 last week. The cross could take out 0.7116 support today, which would confirm this view and bring retest of 0.7013. GBP/JPY's consolidation from 189.70 should have completed at 174.86 and further rally would be seen to retest 189.70 high. GBP/USD breached 1.5551/68 cluster resistance and is likely heading back to 1.6 handle.
In Eurozone, Eurozone finance ministers said after a meeting in Brussels that they "welcomed the progress" Greece achieved so far but "more time and effort are needed to bridge the gaps on the remaining open issues." Greek finance minister said that the country's financial situation is "terribly urgent". And, from there perspective of timing, Varoufakis said it's about "the next couple of weeks".
In US, San Francisco Fed president John Williams said that the April job report was a "positive" signal that the economy is having solid momentum, with "pretty steady job gains". He described Q1 weakness as "an anomaly" and he expected the economy to bounce back. Nonetheless, the outlook for inflation is "the big question" for Fed. And he declined to comment on whether Fed would hike in June.