As we can see from the latest forex trades data the British pound has recovered its positions. One of the main reasons was the rapid growth of the producer prices in the United Kingdom. Input prices for the April overcame experts’ expectations and increased by the 2.4 percent and the output prices growth for the same period of time was 1.4 percent.
According to the UBS official the present economic data is not a positive one for the Monetary Policy Committee that will have to be less active just to keep an opportunity of decreasing interest rates.
Nevertheless other trading data was quite positive showing us that the deficit has declined and come to the point of 7.4 billion pounds. However we will have consumer price inflation level issued on Tuesday and it seems that the only reason of further rate cuts will be the price pressures.
As for the United States currency it has decreased again in relation to Euro after the announcements of the European Central bank officials. One of the main tasks of t European Central Bank is the price stability as the ECB governing council member Jose Manuel Gonzalez-Paramo has announced.
Moreover according to experts expectations the United States currency will not probably grow rapidly in relation to the Euro until the last one will become too weak and cause the European Central Bank to decrease interest rates.
A CMC Markets official – Ashraf Laidi has announced that the strong American economic numbers will slightly be the solely cause of the Euro sell off.
And finally there will be new information that can affect the results of further forex trading sessions. It is the speech of the European Central Bank President – Jean-Claude Trichet that we will be able to hear later today.