Cautious language from Federal Reserve Chairman Bernanke sent risk sentiment reeling on Wednesday. While US rate hike expectations continue to deteriorate, markets are pricing in significant monetary tightening elsewhere, with the US Dollar caught between the opposing forces of risk aversion and a lackluster yield profile.



United States Federal...

The British Pound bounced back from the low (1.4335) and pared the overnight decline to maintain the tight range carried over from the previous week, and the GBP/USD appears to be carving a near-term bottom just above 1.4200 as the daily RSI rebounds from oversold territory.

Talking Points
• Japanese Yen: Weighed by Risk Appetite
• Pound: Mortgage Approvals Tip Higher in April
• Euro: German Consumer Confidence Weakens in June
• U.S. Dollar:...

The British Pound rallied to a high of 1.4516 during the European trade as inflation exceeded the central bank’s upper limit for the third time this year, but failed to maintain the overnight rally as Bank of England Governor Mervyn King maintained a cautious tone and continued to see “substantial” slack in the real economy.

Talking Points
• Japanese Yen: Falls Across the Board on Risk Appetite
• Pound: Inflation Exceeds BoE’s Limit For Third Time This Year...