Sterling sinks on rate cut talk while.........>

FOREX: Sterling sinks on rate cut talk while USD/JPY inches to new high

- The pound was already the poorest performer in G10 FX in early Europe

following a weekend interview with MPC member Vlieghe, who stated that he will

add his name to the list of those voting for a rate cut should there be no signs

that the economy has improved since December's general election. Further weight

went through in the currency as data disappointed, with industrial &

manufacturing production and monthly GDP numbers raising the risk of near-term

economic weakness. GBP/USD found little support at $1.30 and is sitting at

multi-month lows at typing.

- Elsewhere, risk appetite is looking moderately healthy - with core European

equities higher and US futures within range (again) of all time highs. The moves

helped boost both USD/JPY and EUR/JPY into the NY crossover, with USD/JPY within

striking distance of Y110 - a mark not crossed since May last year.

- There's little data from the US Monday, with focus turning to Canada's BoC

outlook survey. Fed's Rosengren and Bostic are both due to speak.