Review of EUR/USD and GBP/USD from 05/31/2019: Great standing still

Although the second estimate of United States GDP in the first quarter showed that the pace of economic growth accelerated from 3.0%, not to 3.2%. But if it is to 3.1%, it would have no effect on the dollar. In theory, investors who had previously pledged a slightly more rapid acceleration of the US economy into the dollar would have to revise their plans. However, nothing like that happened. Of course, I would like to say that the whole thing is in the data on applications for unemployment benefits and the total number of which decreased by 23 thousand. But then, how about commodity stocks in wholesalers, which increased by 0.7%? That is for good but the American statistics were rather negative. Thus, the confident position of the dollar is more likely due to the fear of the unregulated Brexit, whose consequences no one can predict. More precisely, it may happen but all these predictions are painfully sad not only for the UK but for Europe as a whole. In respect to continental Europe, it is likely that they just exaggerate. However, this will not get any easier.

Today, first of all, a pound will have the opportunity to somehow improve its position. To help in this should data on the credit market in the United Kingdom, which can show that the volume of consumer lending amounted to 1.0 billion pounds, against 0.6 billion pounds in the previous month. Also, the number of approved mortgage applications should increase from 62,341 to 63,250. In the United States, personal income and expenditure data are coming out, which should grow by 0.3% and 0.2%, respectively. Usually, outstripping revenue growth implies a decline in consumer activity, which may adversely affect sales. However, given the fact that in the previous month, income and expenses increased by 0.1% and 0.9%, respectively, today’s data will simply show the alignment of family budgets, which is an absolutely normal situation. So it will have no effect on the market.

First of all, the single European currency will continue to stand still as it was yesterday. Hence, we continue to observe minor fluctuations in the region of 1.1150. The pound will have the opportunity to somehow improve its position. To help in this situation, data on the credit market in the United Kingdom can show that the volume of consumer lending amounted to 1.0 billion pounds against 0.6 billion pounds in the previous month.

The pound immediately rushed towards 1.2650 – 1.2675 under the influence of at least some good news.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Review of EUR / USD and GBP / USD from 05/31/2019: Great standing still