US Dollar Loses At The Weekend!


The USD plunged after the economic data published declined

BOE signals dovish after policy meeting

UK GDP data, Canadian jobs and US consumer sentiment take center stage

The US dollar began to display a gloomy performance towards the end of the week when it was affected by the latest United States (US) economic data published yesterday with declining readings.

The reading of US jobless benefits claims for the previous week recorded a figure that rose to 231,000, the highest since August last year.

This reading accompanies the NFP employment report published at the end of last week which saw a decline in the labor sector in April.

After the horizontal movement displayed before, the US dollar again showed a depreciation in the New York session yesterday.

This has opened up space for other major currencies to recover.

The Pound was also in focus on Thursday's trading yesterday with the outcome of the Bank of England's monetary policy meeting being watched.

The Bank of England (BOE) is expected to keep the interest rate at 5.25%, but the MPC members vote showed that there were two votes for the rate to be lowered, the rest supported for the rate to be maintained.

According to a statement by governor Andrew Bailey, he stated that inflation is moving on the 2% target track.

It seems that the central bank is likely to be ready to implement interest rate cuts for the next quarter.

However, the action will depend on the latest economic data that will be present after this.

The pound experienced a decline at the beginning of the reaction to the meeting's decision, but recovered towards the end of the trading session as the US dollar began to decline.

The focus of the day will be on some economic data such as UK Gross Domestic Product (GDP) in the European session, and in the New York session the Canadian employment report and the US consumer survey will be published by the University of Michigan.