Preliminary Results of Elections in the UK Hit the Pound

Today, the GBP/USD currency pair opened with a gap down of more than 120 points. According to preliminary data, none of the parties received the majority of votes in the House of Commons (326 seats). The Conservative Party won 314 seats. These events increase uncertainty over Brexit issues. At the moment, the drop in the GBP/USD quotations exceeds 2%.

Yesterday, the ECB kept interest rates at the same level. The Central Bank has raised the forecast for the growth of the Eurozone economy from 1.8% to 1.9% this year. At the same time, Mario Draghi said that in 2017 inflation is expected at 1.5% compared with the previous value of 1.7%. Participants of the financial markets negatively perceived a decline in the inflation forecast, which put pressure on the single currency. The regulator intends to maintain current interest rates for a long period of time.

In May, China's consumer price index (on an annualized basis) increased by 0.3% to 1.5%.

Market Indicators

The last trading session, US stock indexes are in a sideways trend. During yesterday's trading #SPY (SPDR S&P 500 ETF) rose by 0.05% and completed the trading session at 243.78 USD.

The 10-year US government bonds yield continues to show positive dynamics. At the moment, the indicator is at the level of 2.20%.

The US dollar is strengthening against the basket of world currencies. At the moment, the dollar index (#DX) added more than 0.5%.

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

  • – Production volume in the manufacturing industry in the UK at 11:30 (GMT+3:00);
  • – Statistics on the labor market in Canada at 15:30 (GMT+3:00).

by JustForex, 2017.06.09

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.