The Pound depreciated heavily yesterday after a dovish tone from many Bank of England policy makers whistled around the markets. The comments suggest that the BoE are in no rush to raise the main benchmark rate. Sterling weakened against the Greenback for its fifth consecutive day yesterday after the Fed refrained from raising rates last week and spurred the trend lower. BoE deputy Governor Ben Broadbent was the latest official to voice concern about higher interest rates in the UK. Broadbent said that he has not been on the brink of voting for an increase, suggesting that rates are likely to remain at record lows for the rest of the year.
Meanwhile, the ECB released its latest tranche of targeted LTRO payments. The estimated reading was €50.3B, however this fell extremely short and registered a lower figure of €15.5B as the Central Bank reduced the amount of stimulus pumped into the fragile Eurozone economy. The lower than expected figure signals that liquidity is returning to normal and therefore there is no need for banks to soak more money up.
Fed Chair Yellen spoke late last night at the University of Massachusetts regarding Inflation and the Federal Reserve’s monetary policy.
The final reading of GDP for the second quarter is set to be seen from the US. With the second reading increasing to a bullish 3.7%, this number is expected to remain in this final reading and if registered here or above will again give a great outlook for the US economy and also boost the greenback.