Currency Exchange News!
New York Exchange Market: Investors shall remind the CPI index on Thursday
The rate of USD to most currencies increase on Wednesday. The investors don’t care about the PPI index in August is lower than expected but the CPI index on Thursday. US PPI index was expected to increase 0.3% but only at 0.2%. USDX to six currencies increased 0.6% to 92.395.
The rate of USD to GBP increased as well on Wednesday. The pressure is on GBP now. The numbers of British industry destroy the expectation of British Central Bank Hawks. GBP fell to 1.3208 USD, ended at 1.3284 on Tuesday at New York market. The increasing of wage didn’t fit the expected for British. British Central Bank will have a policy meeting on Thursday.
We expected British Central Bank would remain the same rate of interests. However, some analyst believes few decision officers would note for increasing interests. They pointed out that the current rate of inflation is 2.9% higher than 2% the expected goal. The pressure of inflation rises because of after June 2016 British Referendum for leaving EU, GBP fell.
On Wednesday, GBP increased to 1.3329 USD high point. The British government announced that the inflation rate is 2.9%. It is higher than the expected. Therefore, GBP starts to increase. However, according to British Statistic Bureau, the wage has increased 2.1% over the 3 months to July. Analyst expected 2.3%. If we consider the factors of inflation, then the wage is actually dropped 0.4%.
Analysts said British Monetary Policy Committee not only cares about the speed up of inflation but also the impact of leaving EU. They might tend to remain the rate of interests even until the end of the year.
If there are two members vote for increasing the interests rate, then GBP might increase.
Euro fell to 1.1895 USD. Ended at 1.1966 on Tuesday at New York market.
USD increased to 110.46 JPY. Ended at 110.17 on Tuesday.