San Francisco Fed President John Williams said, “The Federal Reserve is on track to raise interest rates in June or July despite risks such as The United Kingdom European Union membership referendum, and will continue with even more hikes next year given U.S. economic strength.”
On the other hand, St. Louis Federal Reserve President James Bullard said, “A relatively tight labor market in the United States may put upward pressure on inflation, raising the probablity of further interest rate hikes.” The U.S. Dollar index fell yesterday and settled at 95.26.
EUR settled vs. USD yesterday, despite the recovery data from Germany and France. From a technical point of view, the fiber could settle around $1.12.
The GBP traded sideways yesterday, with a downward trend vs. the USD, negatively affected by a statement from Steve Hilton who mentioned, “Britain must leave the ‘arrogant and unaccountable’ EU.” The cable could settle around the psychological level of $1.45.
Japanese Yen recovered yesterday vs. the American dollar and traded around 109 levels, after the Japanese Finance Ministry stated that Japan’s exports fell for a seventh consecutive month in April compared with a year ago.
Oil prices declined to a three-week low amid expectations that the US Federal Reserve will raise interest rates as early as June. The yellow metal has been under pressure since the Fed last week released the minutes of its April meeting, which showed that Fed officials believe the U.S. economy could be ready for another rate hike next month.
Oil prices gained little yesterday as Iran said it has no plans to freeze its output. WTI traded above $48 and could touch $50 during the coming period.
The most important economic events:
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