Forex

The BOE Inflation report pushed the sterling to its lows

By Forex-Metal

Asian and European trading sessions:

Euro: On Wednesday investors were under pressure of FRS prognosis for the rehabilitation of the US economy, which was released yesterday. Risk sentiment dropped.

The EUR/USD rate decreased and reached the $1,3025 mark.

US Dollar: As the save-haven currencies were in demand on Wednesday, the US dollar managed to grow against its competitors.

British Pound: Wednesday saw the decrease of the sterling, which was a result of the published negative UK statistics from Tuesday evening. In particular, the Nationwide consumer confidence for July dropped below its forecasts: 56 against forecasted level of 61. The expectations of the Bank of England Quarterly Inflation report, which would be released later during the day, pressured the national currency as well. The BOE was supported to reduce its forecasts for the GB economic growth.  As a result, the GBP/USD pair showed minimums in the range of $1,5770.

The release of the BOE inflation report resulted in the increased speculations regarding the possibility that the principal rate would not be increased in the nearest future.

Japanese Yen: As a save-haven currency, Japanese yen showed consolidation against the major currencies. The FRS yesterday’s statements regarding weak forecasts for the rehabilitations of the American economy increased the demand for the low-risk currencies.

The USD/JPY pair traded around the Y85,00 range.

Gold and Silver: Gold rate decreased to $1197 per ounce and the silver price dropped to $17.87 per ounce.

Oil: During the morning trading the oil prices dropped below $80 per barrel. The negative influence was derived from Chinese fundamentals, which showed the slow-down of the industrial production growth rate.  The US dollar strengthening was pushing the oil prices lower as well.

American trading session:

Australian Dollar: Market participants are expecting for the release of the Australian fundamentals on Thursday. The Australian employment change for July is forecasted to grow for 20.0K.