Forex: Tuesday's review
The dollar dropped against most of its major counterparts as China’s interest-rate increases failed to quell investors’ appetite for higher-yielding assets.
The benchmark one-year lending rate will increase to 6.06% from 5.81%, effective tomorrow, the People’s Bank of China said on its website today. The one- year deposit rate will rise to 3%, from 2.75%.
Higher consumer spending, along with business investment in equipment and software, point to U.S. growth this year of “pretty close to 4%,” Lacker said today in a speech in Newark, Delaware.
Fed Chairman Ben S. Bernanke testifies tomorrow at a hearing of the House Budget Committee. Sterling
dropped after the U.K. increased a levy on bank balance sheets.
EUR/USD: the pair shown high in the field of $1.3690, but to end of session decreased.
GBP/USD: on results of yesterday's session the pair decreased below a mark $1.6100.
USD/JPY: positions of pair on results of yesterday's session essentially havn't changed.
UK data includes trade and also the latest Bank of England Quoted Rates data. The trade data is expected to be steady at -stg8.7 billion in Global Goods with Total Trade at -stg4.0 billion.
US data starts at 1200GMT with the weekly MBA Mortgage Application Index. The main event is likely to be at 1500GMT,when Fed Chairman Ben Bernanke testifies before House Budget Committee on economic, employment and budget issues in Washington. US data continues at 1530GMT with the weekly EIA Crude Oil Stocks data.