British Pound to Struggle on Easing Inflation- David Song, Currency Analyst at DailyFX

"The British Pound may struggle to hold its ground ahead of the Bank of England (BoE) Minutes as the headline reading for U.K. inflation is expected to slow to an annualized rate of 2.6% in April. However, as the BoE anticipates above-target inflation over the policy horizon, Britain may face sticky price growth over the near to medium-term, and we may see the central bank slowly move away from its easing cycle over the coming months as Governor Mervyn King sees a ‘moderate' recovery in the region. In turn, the policy statement may sound more hawkish this time around, and we may see the BoE keep the Asset Purchase Facility capped at a GBP 375B as the Funding for Lending Scheme continues to work its way through the real economy."