Pound is Under Pressure due to Comments of the Head of the Bank of England

Yesterday, the US dollar showed confounded results relative to major world currencies. The greatest fall was demonstrated by the GBP/USD currency pair. The head of the Bank of England, Carney, took heed. The Chairman believes that there is no need to hurry with the increase in rates this year since the latest statistics on wages and consumer spending is ambiguous.

The pressure on the euro was provided by weak statistics from Germany. In May, the producer price index fell by 0.2%. Experts expected the index to fall by 0.1%.

In the black gold market, the bearish sentiment continues to prevail. During yesterday's trading, the decline in futures for WTI crude oil exceeded 1.5%. Today, statistics on crude oil reserves from the US Energy Information Administration (EIA) will appear. This report may have an impact on the dynamics of the commodity currencies.

Market Indicators

Yesterday, US stock indices closed the trading session in the negative zone. SPY (SPDR S&P 500 ETF) decreased by 0.67%.

The 10-year US government bonds yield showed negative dynamics. At the moment the indicator is at the level of 2.16%.

During yesterday's trading, the dollar index (#DX) rose by 0.07%.

Today we recommend you to pay attention to the following economic reports:

  • – Sales in the secondary housing market in the US at 17:00 (GMT+3:00);
  • – The crude oil reserves in the US at 17:30 (GMT+3:00).

by JustForex, 2017.06.21

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.