Today the Fed will make a policy statement at 21:00 GMT+3. This event will affect all the currency pairs with the USD and thus almost the all Forex market!
British inflation edges up 2.4%
In June, inflation in Great Britain tacked on at a slower than anticipated tempo, thus contributing to the major bank’s dilemma as it considers whether to have interest rates lifted next month or not.
According to the Office for National Statistics, the annual rate of inflation went up by approximately 2.4% in June. The given outcome actually matches May's reading that turned out to be a one-year minimum. It also confounded hopes for a 2.6% leap.
On a year-over-year basis underlying inflation ascended by 1.9%, speeding down from 2.1% in June and confounding estimates of 2.2%.
As a matter of fact, in June, consumer prices stood still for the month, slumping from May’s outcome of 0.4% and in contrast with a bunch of estimates of 0.2%.
By the way, the inflation figures showed up just day after data that disclosed that wage surge in the United Kingdom speeded down to its weakest value for six months in the three months to May, notwithstanding record employment.
The abrupt sag in the UK currency in the wake of the June 2017 Brexit referendum managed to drive up the cost of imports. As a result of this move, a jump in the country’s inflation was recorded. In spite of the fact, it has rebounded from its November maximum of 3.1%, it’s still running above the major bank’s objective of 2%.
With inflation outstripping wage surge British customers are currently coming across a cost of living squeeze. As a number of reputable financial analysts pointed out, it makes an August interest rate lift less probable.
The retail price index, uncovered at the same time as the inflation report, ascended to about 3.4% from 3.3% year-on-year. By the way, the given index is utilized for the purpose of pricing some government debt.
PMI reports from the EU, the UK, and the USA will be released during the day!
Moderna rocketed after an announcement that it is going to join the S&P 500 index. The New Zealand dollar surged after the nation’s inflation surpassed the central bank’s target level.
Our analyst discusses the latest news and shares his trade ideas on gold, EUR/USD, and S&P 500. Jump in!
The Bank of England will publish a monetary policy statement and update on the interest rate on Thursday, at 14:00 MT time.
The Reserve Bank of Australia (RBA) will hold a meeting and announce changes to the monetary policy on August 3, at 07:30 MT time (GMT+3).