Positive inflation data did not bring more support to the pound after the International Monetary Fund (IMF) sharply lowered its growth forecast for the UK economy. According to the IMF, Proposed referendum on United Kingdom membership of the European Union would make the growth of the UK fell by nearly 1% in 2017 from 2.2% forecast to 1.3%. The agency also stressed that increasing instability following the referendum in the UK forecast domestic demand weakened significantly. The British pound was under pressure after rating agency Moody's warned the UK's economic growth will slow significantly in the short term. Prospects for growth in the medium term will continue to weaken, if I do not reach an agreement with the EU trade in the case of this country officially out of the coalition.
EUR / USD fell back yesterday after the index threshold 1:10 conviction economic survey by the ZEW economic outlook for Germany in the next 6 months dropped from 19.2 points to minus 6.8 points, 8.2 points lower than the forecast of analysts. Indicators on the euro zone also fell from 20.2 points to minus 14.7 points from the 12.3 points forecast. ZEW survey showed investors and economists are pessimistic perspective on the prospects of the eurozone after a number Proposed referendum on United Kingdom membership of the European Union.
The market's attention focused on the results of the meeting of the European Central Bank (ECB) launched tomorrow. Analysts predict the ECB will not be any change of policy in this session. However, ECB President Mario Draghi might be open to a stimulus in the near future if the economic outlook deteriorated areas due Proposed referendum on United Kingdom membership of the European Union. Any policy easing signal is given will create downward pressure on the euro.
The commodity currencies dropped sharply in yesterday's trading session. Canadian Dollar weakened as oil prices on world markets continue to decrease and the lowest level in the last 4 months. Meanwhile, the possibility of the Reserve Bank of Australia (RBA) will cut interest rates at the meeting in August was up to 60% after the minutes of the July meeting of the agency announced yesterday that the AUD strong is difficult for economic rebalancing and emphasized that inflation expectations remain below the targets, suggests the possibility of further easing of monetary policy in the near future.
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