Sterling and Loonie Strongly Strengthened, Euro Stays Sustained

Market Reviews

The Pound and Loonie have significantly risen as BoE and BoC started discussing a rate increase. The single currency is still the firmest, yen and greenback are the weakest. As we already know, the single currency was boosted by Mario Draghi’s statement about ECB’s policy steps for the future. But, there seem to be some kind of misunderstanding as the President simply intended to reassure markets that the economy is recovering and that it’s better to wait this time of low inflation out. Instead, everybody assumed that ECB is ready for an exit from an ultra-loose monetary policy.

Investors remain concerned about Donald Trump’s presidential capacity, particularly about protracting the healthcare bill. International Monetary Fund reduced its US growth projection. Currently, Fed fund futures are pricing some 20% odds for the Septermber’s rate hike. Japan retail sales increased 2.0% yoy in prior month. New Zealand ANZ business confidence grew to 24.8 this month. Germany is about to publish Gfk consumer confidence and Consumer Price Index. Eurozone will announce confidence figures. Britain will show mortgage approvals and the United States will issue Groos Domestic Product of the first quarter and unemployment claims.