The USD continues to grow
According to the latest news from the Forex markets the United States dollar continues to grow in relation caused by the opinion that there will be no more declines of the interest rates. The Federal Reserve considers the inflation as the one of the main problems and still is trying to pursue the policy in the proper direction.
The CMC Markets official James Hughes said that many forex traders heartened by the yesterday’s speech of the Federal Reserve Chairman despite the fact that this speech hardly resembled the monetary police roadmap.
Due to the Ben Bernanke the situation at the financial markets has improved in the whole but there is still a need for further improvements. According to the San Francisco Fed President Janet Yellen inflation remains the main problem the Fed faces.
And now we have the USD growing in relation to Euro and British pound as well. We suppose the USD may reach new highs in case there will be the growth of the US CPI data. Its growth was 0.3% in the March and the same numbers are expected for the April.
As for the European inflation data we can see certain decline in the France. The growth of the consumer price index of the France was 3.0% annually and 0.3 percent for the April. Such numbers were not something unexpected but still they were below the 0.8 percent growth that occurred in the March. The situation with British pound will become clear after the issue of the Inflation Report by the UK Central Bank.
According to the Steve Pearson, the HBOS official the British pound decline and the growth of the energy and commodity prices may cause the inflation outlook to be higher then expected. Low activity data accompanied by the stagflation will not contribute somehow to the British pound growth.
Moreover the UK labor market data is expected to be released today but we suppose they will not be positive showing the same level of the unemployment in the Great Britain.
Nevertheless the headline average earnings will probably show us the growth by the 3.8 percent for the first 3 months of this year.
