Sterling shies away from negative rate........>

FOREX: Sterling shies away from negative rate chatter

- GBP took a dip following an appearance from BoE MPC member Broadbent on CNBC.

Broadbent, when asked about negative BoE policy rates, stated that the MPC are

prepared to do what is needed and that all policy tools are under review. The

fact that Broadbent declined to rule out negative policy rates saw GBP/USD

retreat back toward $1.23, although the overnight/Monday lows at $1.2288/1.2283

remain in tact for now.

- AUD slightly underperforms as trade tensions between Australia & China

ratcheted higher. China extended import bans from Australian barley to cover

meat abattoirs - to total limits on around A$5bln of exports. AUD/USD holds well

toward the bottom end of the week's range, with $0.6379 the initial support.

- US CPI release for April is the data highlight Tuesday. Of more relevance,

perhaps, is the speaker schedule. Fed's Bullard, Kashkari, Harker, Quarles and

Mester are all due to speak as well as ECB's Stournaras, who appears on a

webinar alongside the former President of the ECJ to comment directly on the

recent German Constitutional Court decision.