Sterling is the centre of attention among traders in Europe, which has slid against the dollar by 0.7% to 1.2668 since BoE governor Mark Carney’s statement that now is not the time to increase interest rates. He also gave an indication of weak growth in earnings to come. The pound has fallen against the Euro by 0.75% to 0.8805.
The Canadian dollar is trading down on the back of a fall in oil quotes. Brent oil has fallen by 1.78% to 46.02 USD per barrel. The AUDUSD and NZDUSD pairs are also heading south.
At the time of writing this review, the US dollar index (DXY) has broken 97.57 level, breaking the resistance. The Euro rate is approaching the support zone from 1.1132 to 1.1138 and the risk of a breakout has increased. The price is currently holding at 1.1154 because of the EURGBP cross.
Currencies will continue to trade to the tune of Brexit news. Since the US economic calendar is bare, ECB member Carré’s and FOMC member Kaplan’s speeches will have a minimal effect on the dynamics of currencies today.