Important events today:

2:30 p.m. UTC – US: Crude oil inventory data from the Department of Energy.

A number of Bank of England officials believe that inflation in the British economy will decline in the second half of the year, allowing the regulator to end its interest rate hike cycle in the fall. No sooner had the Bank of England raised its rate by 0.5pc to 5% last Thursday than panic broke out among its ranks, which is not surprising given the increased risks in the bond market.

Since the regulator will have to raise the rate again in August, commercial banks and pension funds already do not know how to survive the “drawdown” on bond portfolios to meet capital adequacy ratios. For the pound, such comments from Bank of England officials are negative, as traders previously thought the regulator would raise the rate to 6% in December, but now expectations have been reduced to 5.5%.

Recommendations: Sell 1.2755/1.2785 and TP 1.2687.