The yen dropped to a seven-year low against the dollar as investors bet Japan’s Prime Minister Shinzo Abe will win an early election, renewing his mandate to pursue stimulative monetary policy and structural changes.
The pound fell to the weakest level in a month versus the euro as a report showed the U.K. inflation rate stayed near a five-year low, adding to speculation the Bank of England will delay increasing interest rates.
Eurodollar futures and Treasuries are enjoying a rather spirited bull advance this morning following Bank of England recognition that the Eurozone will negatively impact domestic growth prospects leading to a forecasted mid-2015 policy rate firming rather than anything sooner.
Regulators in the U.S., Britain and Switzerland ordered five banks to pay about $3.3 billion in the first wave of penalties since authorities began a global probe into the rigging of key foreign-exchange benchmarks last year.
The BofE noted that the pace of inflation was very likely set to fall through its 1% floor at some point during the next six months. That would require Governor Mark Carney to pen a letter to the Chancellor of the Exchequer to explain why