The British pound weakened against the US dollar on Tuesday after UK data resulted in a trade deficit for April and further strengthened the concerns over the country’s economic strength. European Commission Vice-President Dombrovskis stated on Tuesday that Greece could possibly reach a deal with its creditors within the next couple of days, but differences such as a primary surplus target need to be resolved first. The euro was last trading just below 1.13 against the greenback.
Reserve Bank of Australia’s Governor Stevens spoke on Wednesday about the possibility of further rate cuts if necessary, but warned that an easier policy has risks given the high household debts. The governor also asked for policy makers “to create upside risks” for economic growth and concentrate on more infrastructure spending. The Reserve Bank of New Zealand is expected to announce its interest rate decision at 21:00 GMT on Wednesday, immediately followed by the RBNZ Press Conference.
The US dollar started Wednesday with a drop against major currencies but was somewhat supported by the rising US Treasury yields. The Dollar Index dropped to $94.83 on Tuesday, breaking below $95 again. US Crude Oil on the other hand rose by more than 3% on Tuesday and started Wednesday’s Asian session up at $60.71. Crude Oil Inventories data is coming at 14:30 GMT, with an expected drop of 1.5M barrels.