The US Dollar and the British Pound Are Under Pressure

Yesterday, the US dollar weakened against the basket of major currencies after the release of a weak inflation report in the US. In April, the core consumer price index slowed down to 0.1%, while investors expected a value of 0.2%. These statistics indicate that the Fed is likely to adhere to the current plan and raise the interest rate twice this year. In the near future, the attention of financial market participants will be focused on the comments of the Central Bank representatives on further progress of the monetary policy tightening. The US dollar index (#DX) closed in the negative zone (0.33%) yesterday.

The British pound has been decreasing after the Bank of England left the interest rate unchanged at 0.50%. The regulator also said that the next raising of the interest rate would be made gradually. The Central Bank plans to assess the future flow of economic reports.

The “black gold” prices are stable. Futures for the WTI crude oil are testing a mark of $71.25.

Market Indicators

Yesterday, the bullish sentiment prevailed in the US stock market: #SPY (+0.94%), #DIA (+0.84%), #QQQ (+1.04%).

Yesterday, the 10year US government bonds yield decreased. At the moment, the indicator is at the level of 2.952.97%.

A report on the labor market in Canada at 15:30 (GMT+3:00).

We also recommend paying attention to the speech of the ECB President Mario Draghi.

by JustMarkets, 2018.05.11