The markets were relatively quiet during the day and did not witness many notable moves as markets awaited the FOMC meeting to announce the rate decision. The markets have priced to raise interest rates by 94%. Markets will be waiting for comments by Janet Yellen, Federal Reserve Governor at the press conference, and to get more information about the US Federal Reserve cutting its balance sheet by about 4.5$ trillion later this year.
The UK inflation figures, which continued to rise to a 4-year high of 2.9%, have already had a noticeable impact on the Pound's moves to continue rising since the beginning of trading day against the US Dollar, rebounding from a strong support at 1.2640 Reaching its highest level since yesterday at 1.2748 and approaching the resistance level at 1.2770. Continued high inflation puts further pressure on the BOE to raise interest rates as soon as possible.
In the US, the PPI did not change in May as energy costs recorded the biggest drop in more than a year, suggesting inflation moderated after rising earlier in the year. The index rose 2.4% in May on a year-on-year basis after a 2.5% rise in April, the biggest increase since February 2012. The US dollar did not see a significant change in tomorrow's wait.
