The British Pound was boosted by the revelation of higher-than-expected UK GDP numbers on Friday, as well as an increased risk appetite. The UK economy rose by 0.6% in the first quarter, exceeding expectations and heralding the end of the country’s brief recession. Finally, this economic resurgence marks the most significant growth in more than two years.

The Euro has remained relatively flat, despite ECB policymakers stating that they will likely be able to decrease interest rates in June as Eurozone inflation is expected to fall back to 2% next year. In turn, markets expect the ECB to lower interest rates on June 6th, despite the fact that the rate path beyond that is uncertain.

The US dollar steadied after recent oscillations, as attention turned to anticipated US inflation data for fresh clues on interest rates. The CPI report, anticipated on Wednesday, will be closely watched since it is likely to influence the outlook for US interest rates. While the US economy appears to have cooled in recent months, inflation is expected to remain sticky.

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