Overview of current events 3 august 2017
A large block of economic data is released today.
At 08:30 GMT comes the PMI index for the service sector of the UK economy. Traditionally, when the value of the index is above 50 in comparison with the previous month, it will indicate an improvement in sentiment. The main event that will have the maximum impact on the GBP / USD rate will be the decision on the Bank of England's principal interest rate. This decision will be published at 11:00 GMT. In addition to the decision, the Bank of England's quarterly inflation report will be released, containing economic analysis and a forecast on the dynamics of prices for goods and services, a summary of the overall state of the Kingdom's economy and an assessment of global trends. The culmination of the release of this data block and the decision on the rate will be the speech of the head of the Bank of England, which will set the long-term vector of movement for the GBP / USD currency pair.
Volatility in the evening will increase on all currency pairs containing the US dollar. At 12:30 GMT, we will wait for the number of initial applications for unemployment benefits. Due to the difficult situation on the labour market, the indicator has gained significant importance and influence on the decision-making on monetary policy in the United States. ISM for the non-production sector will complete today's output of statistics.
What to expect from the currency pair?
One of the main factors behind EUR 'growth was, and still is, to a lesser extent, the narrowing of spreads of European and American bonds, as a result of which the carry trades closed. Any strong statistics from across the ocean will lead to a correction for the pair in the area of 1.16-1.15. At the moment, the EUR move upwards is losing steam and needs at least a consolidation at its current levels. At the moment, the market forgot about the idea of parity of the EUR / USD pair. Rather, there are forecasts of the goal of the movement to the level of 1.25.
Follow the publications on the site, in the near future there will be a detailed technical analysis on the EUR / USD pair.
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