The U.S. Federal Reserve is widely expected to raise its benchmark interest rate this week due to a tightening labor market and may also provide more detail on its plans to shrink the mammoth bond portfolio it amassed to nurse the economic recovery.
Investing.com - The pound rose on Tuesday after data showing that UK annual inflation hit a four-year high last month, while the dollar slipped lower against a currency basket as investors awaited the outcome of this week’s Federal Reserve policy meeting.
UK Consumer Price Index (CPI) data for the month of May showed annual inflation climbing to a near four-year high. Sterling experienced volatility as the data hit the markets.
The Central Bank of Nigeria (CBN) yesterday announced that it has intervened in the inter-bank Foreign Exchange market to the tune of $413.5 million, further underscoring its resolve to guarantee liquidity in the market as well as shore up the international value of the naira.
The ZEW Indicator of Economic Sentiment for Germany dropped by 2.0 points in June 2017 and now stands at 18.6 points. The indicator thus still remains below the long-term average of 23.9 points. By contrast, the assessment of the current economic situation in Germany improved once again in June. The indicator climbed by 4.1 points to 88.0 points. This is the highest level since July 2011.
Most Asian emerging currencies moved only marginally on Tuesday, as traders awaited a Federal Reserve meeting that is expected to raise the US benchmark interest rate and signal the pace of further hikes in 2017.
Next trading day's important events
- USDJPY: 110.08
- EURUSD: 1.1211
- S&P 500: 2436.78
- NASDAQ: 6213.70