Since the beginning of the Asian session the dollar continues to strengthen its position. Data was released yesterday with the decision of the Federal Reserve to leave the interest rate unchanged at 1.25%. Investors were well-prepared for this and the dollar continued to trade in a positive territory against major currencies. Today we expect Donald Trump's announcement of a new Fed chief, who most likely will be the current Fed governor Jerome Powell. The activities of the current Fed chief Jannet Yellen have been praised by the President as "excellent," but this is unlikely to serve as a reason to appoint her to the post again.
One of the highlights of today will be the speech of the Bank of England and the announcement of changes in interest rates. In case of tough statements from the representatives of the Bank of England we should expect growth in the British currency. It is possible that the Bank of England for the first time in 10 years could raise its key interest rate from 0.25 to 0.5%, since the level of inflation is near 5-year highs at the level of 3%. The market shows a 90% probability of the first estimates of the probability of a rate hike. If this does not happen, the British currency will continue to decline. In addition, forecasts regarding the economy and inflation will be published today. During the release of the news we expect increased volatility.
