Sterling Sours as Broadbent touts further.....>

FOREX: Sterling Sours as Broadbent touts further easing

- EUR/GBP is testing the 50-dma and GBP/USD dropped toward recent lows as BoE

MPC member Broadbent declined to rule out negative rates in the UK despite the

policy rate already sitting at the effective lower bound. As a result, GBP was

the poorest performer in G10 Tuesday.

- The single currency traded well, topping near-term resistance against the USD

to counter the recent bearish outlook. Markets continue to shrug off any

longer-term hurdles for the ECB's asset purchase program, with ECB's Stournaras

stating he's confident the ECB will find a solution. EUR/USD now needs to top

the $1.0942 50-dma to switch the outlook more constructive.

- UK Q1 GDP due Wednesday is expected to show the initial signs of

Coronavirus-inspired weakness, with GDP seen dropping 2.6% in Q1. US PPI data is

also due, but a speech from Fed chair Powell will likely be the focus, speaking

at 1400BST/0900ET on 'current economic issues'. Markets will be keenly watching

to see if Powell reiterates comments from Bullard and Kaplan - who both spoke

out against negative rates Tuesday.