• Sterling strengthened closer to $1.50 against the greenback but remained on an otherwise fragile footing following the previous day's poor inflation report. 
  
  
• For more than a year, U.K. inflation has been on the decline, culminating with a zero reading in February, the lowest on record that effectively pushed further from view the chance of a U.K. interest rate hike any time soon. Moreover, the deteriorating trend in inflation added credence to remarks last week from a senior Bank of England official who saw about an even chance of the bank cutting rates as raising them as the next move. 
  
  
• Next on the radar to drive the pound will be Thursday data on U.K. retail sales which are forecast to rise after falling in January.