The head of the Federal Reserve Jerome Powell will testify on the Semiannual Monetary Policy Report on Tuesday and Wednesday
UK pound rallies on retail sales
On Thursday, the British pound managed to ascend to the maximum of this trading session after the publication of data that the volume of retail sales in Great Britain beat forecasts in May because of good weather as well as royal wedding.
The currency pair GBP/USD inched up about 0.49% hitting 1.3442 from the previous outcome of 1.3396 before the report was uncovered.
According to the National Statistical Office, in May, the volume of retail sales in Great Britain tacked on considerably surpassing forecasts by about 1.3%. April’s data was updated upward to nearly 1.8%.
British customers shelled out more money on household goods and food before the wedding of Prince Harry and American performer Megan Markle. Besides this, the soar in expenses can be also explained by good weather in the middle of May.
Moreover, according to the report, the UK economy is gaining momentum once again after a steep slowdown because of previous bad weather conditions.
The UK currency soared in the face of the depreciation of the greenback, rebounding from the positions hit yesterday after the second lift in the Fed's interest rate in 2018 as well as more hawkish statements in favor of tightening monetary policy. The Fed stressed it’s about to double the interest rate in 2018 once again.
The Federal Reserve illustrated the situation in the American labor market as positive. Simultaneously, economic activity in America is steadily going up.
The US dollar index, evaluating the purchasing power of the American currency against six main counterparts, lost 0.29% showing 93.29.
Market participants are still concerned that the Trump administration is about to impose duties worth about $50 billion on China’s goods. The Chinese government warned the United States that similar actions are going to be taken in response to US goods.
The United States will publish the non-farm employment change, also known as non-farm payrolls (NFP) at 15:30 MT time on February 7.
The level of non-manufacturing PMI for the United States by the Institute of Supply Management will be published at 17:00 MT time on February 5.
The Federal Open Market Committee will publish its meeting minutes on February 19, at 21:00 MT time.
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