In European trades on Tuesday the DXY dollar index dropped from 94.93 to 94.24. Greece paid the IMF up on time, production in the manufacturing sector of the UK grew more than it had done since September 2014. The euro/dollar renewed to 1.1278. The pound/dollar tested the 1.5700 level.
According to Reuters news agency, Greece transferred the 750 million euros they owed to the IMF. 650 million of it was held in reserve and the remaining 100 million euros came from the Greek government. Negotiations between Greece and the EU are ongoing.
Further support for the euro came from a growth in the return on 10 year German bonds which increased by 20.5% to 0.722. According to the latest quotes, the euro is trading at around 1.1243 against the intraday maximum of 1.1278.
The pound reacted with a growth to the strong data on manufacturing production in the UK. The index for UK manufacturing production in March stood at 0.5% MOM, 0.7% YOY (forecasted: 0.1% MOM, 0.2% YOY, previous: 0.1% MOM 0.1% YOY).
The index for industrial output in the UK manufacturing industry for March stood at 0.4% MOM, 1.1% YOY (forecasted: 0.3% MOM, 1.0% YOY, previous: 0.4% MOM 1.1% YOY).
On Wednesday the Bank of England will publish its quarterly inflation report. From this traders and investors will find out the central bank’s forecast for GDP, inflation and the labor market. At 12:30 EET, the head of the Bank of England, Mark Carney, will give a speech.
In the evening there’s no important macroeconomic data on the US planned. The pound/dollar is trading at 1.5683 against an intraday maximum of 1.5709. The euro/dollar is trading at 1.1248. If the American participants don’t support a southerly direction on the dollar, it’s possible there’ll be a correction within the scope of 50% from the session growth: euro/dollar – to 1.1206, pound/dollar – to 1.5633.