USD rallies ahead of FOMC meeting
Dollar on bullish trend
The Dollar rises ahead of the FOMC meeting that will be released this Thursday. The upward trend against major currencies began last Friday as retail sales data was better than most economists’ expectations. This drove down the market’s bet for a rate cut in July as it seems that the economy is healthy enough and does not require a monetary policy stimulation. USD/SGD rose by 0.33% last Friday and is currently trading at 1.37 interbank levels.
Sterling under pressure
The UK CPI data is to be released this Wednesday, ahead of BoE’s decision on bank rate due on Thursday evening. Both the CPI and Retail sales are forecasted to fall in May. This slowdown and the unresolved Brexit may swing the BoE to a more dovish tone on their attempts for a rate hiking cycle. GBP fell by 0.34% last Friday and is currently hovering at 1.72 interbank levels.
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