EU session review: Pound falls after VHC minutes

Data released:
06:00     Germany     PPI (March)    0.4%    0.7%    0.7%
06:00     Germany     PPI (March) Y/Y    6.2%    6.5%    6.4%
      UK     BoE meeting minutes (06-07.04)

The pound slumped against the euro as minutes of April’s Bank of England meeting indicated most policy makers thought the past month’s data indicated a weaker economy, damping prospects for interest-rate increases.
Policy makers voted 6-3 to keep the benchmark rate at a record low 0.5%, judging support for the economic recovery should take precedence over tackling inflation. Andrew Sentance maintained his call for an increase to 1%, while Martin Weale and Spencer Dale wanted a move to 0.75%.
“Markets should be a little surprised to find no further members voted for an increase in rates,” said Neil Jones at Mizuho Corporate Bank Ltd. “The pound is being sold as a reflex action by disappointed bulls.”
Data released since the meeting has showed U.K. inflation unexpectedly slowed in March for the first time in eight months.

EUR/USD continues morning rally to a daily highs above $1.4500. But rate failed to break above the resistance at $1.4545 and retreated to $1.4501.

GBP/USD fell after VHC minutes to the lows around $1.6306 before corrected back up to $1.6390. rate remains under pressure.

USD/JPY holds within the Y82.70/90 range.

US data starts at 1400GMT with Existing Home Sales, which are expected to rise to a 5.00 million annual rate in March after falling
9.6% in February. The supply of homes for sale has dipped in recent months as sales improved, but the reverse was true in February. US data rounds off with the weekly Crude Oil Stocks data at 1430GMT.