Traders construed the minutes to have a hawkish bias after the central bank commented on a faster pickup in inflation due to sterling appreciation feeding through to CPI at a faster pace. Additionally the BoE feels the negative impact of weaker energy and food prices will drop off and help bolster inflation. While cable is the pair traders naturally gravitate towards EUR/GBP has been looking particularly interesting. The pair has been in a downtrend since December and it managed to cap prices until early this month when we saw a bit of a false break. This move didn’t last as the pair could not even make it to 0.7400 before sellers rushed back in. A short term uptrend was broken as a result and it’s been one way traffic ever since. The pair also broke the 61.8% retracement of the March to April rally and now looks like it’s headed back to March lows in the 0.7000 region.