Foreign exchange strategists at MUFG expect a weaker US currency will dominate the Pound to Dollar (GBP/USD) exchange rate with tentative net gains to 1.31 on a 12-month view. In light of recent data, MUFG remains positive on the UK inflation outlook and is confident that there will be a drop in the headline rate to below 2% for the April data released in May. It also notes that the Bank of England (BoE) is less concerned over a fresh inflation increase later in the year while a net easing of the labour market will help curb wages growth. MUFG has shifted its stance and now expects that the BoE will cut interest ... (full story)