Governor Mark Carney allowed British pound (Demo)
The euro slightly hurt by weak eurozone data that came out quite contradictory. On the one hand, there has been a gradual reduction of the surplus balance of payments, and on the other, economy of Germany can demonstrate stronger growth than previously forecast.
According to the European Central Bank, the surplus of the current account of the balance of payments of the euro area in April this year decreased compared to March.
The report noted that the surplus dropped to 22.2 billion euros after 35.7 billion euros in March. Operations with goods surplus fell to 25.1 billion euros from 30.0 billion euros in March, while the surplus in services operations decreased to 7.4 billion euros from 11.7 billion euros.
It is worth noting that already in April, the surplus of the current account of the balance of the eurozone was 3.2 percent of GDP against 3.4% of GDP in April of the previous year.
In the German economy, judging by the Ifo Research Institute forecasts, positive growth. So, thanks to rising consumer demand and increase exports, the country's GDP by 2017 year revised to 1.8% from 1.5% to 2.0% from 1.7% in the year 2018.
Already, apparently, no one is surprised by the growth of the current account deficit in the balance of United States. According to the United States Department of Commerce, 1 quarter deficit increased to 116.78 billion United States dollars. The growth was 2.8% compared to the 4-th quarter. Economists expected that the 1-quarter deficit will reach 122.30 billion.
Statements by representatives of the FED continued today.
For example, Federal Reserve Bank of Boston President Eric Rosengren said that interest rates will probably remain low for some time. Mnuchin United States Finance Minister drew attention to the fact that the crisis increased the FED'S balance sheet should be leveled and Finance Ministry have sufficient funds to meet its obligations until the end of September.
In General, the technical picture in EURUSD remains on the side of the American dollar. Breakthrough support and a minimum of a week in the area of 1.1140 will lead to further downward trends in the region and 1.1170 1.1110.
The British pound fell today to divide after the scheduled speech of the Governor of the Bank of England Mark Carney. Carney noted that the time to raise rates yet to come, although many economists, encouraged by recent Central Bank meeting protocols, began to talk about what the regulator will go to an earlier rate hike that is predicted.
Carney said that weak wage growth is the main reason for the wait-and-see position. Also the Manager deems it necessary to see the reaction of the economy at talks about Brexit.
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