As we expected, calm Monday Tuesday gave way to a slightly increased volatility, while today we are waiting for a full "storm warning". To the output of the prepared the July inflation in the U.S. and the Protocol of the last FOMC meeting, which could radically change the fate of the USD.
Yesterday the leader of the foreign exchange market scale of volatility was the British pound. The GBPUSD from day low at 1.5561 jumped to the maximum in the region of 1.5716, responding to a rather positive price statistics in the UK. It turned out that price pressures in the UK economy is and may even increase. It revived a lot of speculation about a possible rate hike by the Bank of England, giving an upward impetus to the British pound. At the end of the European session quotes GBPUSD was corrected slightly and moved in the lateral mode dynamics in the area 1.5672.
This morning on the foreign exchange market there is a lull. Market participants are reluctant to open new positions ahead of the key block of statistics from the USA. Is preparing to release the minutes from our last meeting of the fed on monetary policy. Players will analyze each sentence of the Protocol, trying to get the answer to all the question – when the interest rate will be increased. However, the experience of similar past releases we can say that the U.S. Central Bank is unlikely to please us with the specifics on this issue.
Another noteworthy release promises to be the July inflation in the United States. If we see the growth index CPI and core CPI above forecasts of +0.2%, and the dollar may receive a powerful stimulus to growth.
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