The Bank of England Meeting and a Report on Inflation in the US Are in the Focus of Attention

The US dollar moved away from highs against the basket of major currencies. However, demand for the US currency is still high. The dollar is supported by the 10year US government bonds yield growth. The US dollar index (#DX) closed the trading session with a slight decrease (0.01%). Financial market participants expect a report on inflation in the US. These statistics may have a significant impact on the dynamics of currency majors.

The British pound has significantly weakened over the past three weeks. At the moment, financial market participants took a waitandsee attitude before the decision of the Bank of England on the key interest rate. Today, the Monetary Policy Committee will take the decision on the key interest rate, as well as publish an inflation report and updated economic forecasts. Investors expect that the regulator will leave the interest rate at the previous level of 0.50%.

The “black gold” prices continue to rise. Futures for the WTI crude oil are testing a mark of $71.75.

Market Indicators

Yesterday, the bullish sentiment prevailed in the US stock market: #SPY (+0.97%), #DIA (+0.81%), #QQQ (+1.09%).

At the moment, the 10year US government bonds yield is at the level of 2.982.99%.

Manufacturing production in the UK at 11:30 (GMT+3:00);Bank of England inflation report at 14:00 (GMT+3:00);Bank of England interest rate decision at 14:00 (GMT+3:00);Core consumer price index in the US at 15:30 (GMT+3:00).

by JustMarkets, 2018.05.10