The Dollar lost ground last night after a statement from the Federal Open Market Committee (FOMC) signaled a pickup in the economy is keeping it on track to raise interest rates this year, though subsequent increases are likely to be more gradual than anticipated.
"Since the committee last met in April, the pace of job gains has picked up and labour-market gains have improved further", Fed chair Janet Yellen said. She then went on to say that Young couples are delaying getting married because they are finding it so hard to get a mortgage to buy their first home
A rebound in job growth is giving Fed officials reason to look beyond a first quarter economic slowdown, but inflation remains below target as central bankers indicate timings of a rate increase depends on various fundamental data.
The Pound gained yesterday morning after average earnings increased and surpassed even the most optimistic of forecasts. This is good news for the British economy as wages now outstrip inflation. Inflation is the measure of price increases in the UK, so when wages are rising faster than inflation, this means there is more disposable income in the British economy.
All eyes were again on Greek Prime Minister Alexis Tsipras who said he’s ready to assume responsibility for the consequences of rejecting an unfair deal with creditors. He warned that he would “say the big no” to any agreement that continued “catastrophic policies” dictated by the country’s bailout. Finance ministers of the Czech Republic and Slovakia, who will be involved in another attempt to resolve the crisis in today’s meeting of euro-area finance ministers in Luxembourg, said a Greek default was now a realistic scenario. Central Bank Governor, Yannis Stournaras, warned that the crisis could become ‘uncontrollable’ and potentially lead to a Greek exit from the European Union, not just the euro area. With only a slim chance of a deal to be reached today, attention will start to be shifted to a summit of EU leaders scheduled for June 25-26 in Brussels, just days before Greece’s bailout program expires at the end of the month. Recent sources have also suggested that German Finance Minister Schaeuble is to tell law makers to make plans in preparation for no agreement with Greece.
09:30 - GBP - Retail Sales is expected
to fall to 0.0% from 1.2%
13:30 - USD – Consumer Price Index Expected to stay the same at 0.2%
13:30 - USD – Core Consumer Price Index
13:30 - USD – Initial Jobless Claims Expected to fall to 275k from 279k
15:00 - USD - Philly Fed manufacturing index
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