Downbeat inflation report sinks pound
US dollar rallies after Powell hearing at Senate
European equities march higher
The beginning of the European session was marked by quite significant gains of the major benchmarks. Swedish and Dutch equities outperform other European stocks. Taking a look at the FX market one can see that USD and CHF post biggest gains while GBP remains depressed following a downbeat inflation report. Precious and industrial metals pull back amid USD strengthening. In the afternoon Fed chair Powell will testify before the House Financial Services Committee (3:00 pm BST).
IBM, a technology giant, and Columbia University, one of the best universities in the world, partnered to conduct a blockchain research. These two research behemoths launched a blockchain research center in the Manhattan campus of Columbia University. The idea is to integrate a Columbia University’s academic knowledge with IBM’s professional knowledge.
Approximately two weeks ahead of the Bank of England monetary policy meeting GBP traders were offered the flat print of price growth in the UK economy in June. The reading has already undercut odds for a rate increase in August, and allowed the quid to extend this week’s drop.
According to Bloomberg reports the European Commission President Jean-Claude Juncker is going to meet with the US President Donald Trump next week. The aim of a meeting is to explore possibility of starting negotiations on reducing car levies. Juncker is said to propose to Trump to reduce car tariffs for the European countries as well as some other major car exporters.
When it comes to equity markets one may notice that riskier assets in Asia have been able to erase part of their recent losses despite quite a hawkish stance voiced by Powell. On the other hand, do not forget that the current pace of interest rate rises has been already pencilled in, hence there is no too much free space to see the US dollar rising solely on this story.