Across different asset classes, evidence is building for a lower EUR/USD, says Bank of America Merrill Lynch.
Reports that China may step up the diversification of its huge foreign exchange reserves is not great news for U.S. Treasurys, already under pressure from talk about an easing in the Federal Reserve’s bond-buying program. But, the fall-out from such a move is likely to be limited, analysts say.
British consumer price inflation fell last month for the first time since September, giving incoming Bank of England governor Mark Carney more leeway to support the economy should the recovery weaken.
•In the 12 months to March 2013 UK house prices increased by 2.7%, up from a 1.9% increase in the 12 months to February 2013.
•House price growth remains stable across most of the UK, although prices in London are increasing and prices in Northern Ireland are falling.
•The year-on-year increase re…
•In the year to April the output price index for goods produced by UK manufacturers (factory gate prices) rose 1.1%, compared with a rise of 1.9% in the year to March.
•Between March and April factory gate prices fell 0.1%, compared with a rise of 0.2% between February and March.
•In the year to A…