GBP/USD: The Great Britain pound fell against the US dollar on Wednesday. The positive UK inflation data supported the pound at the beginning of trading. The Consumer Price Index was up by 2.1% in May, while the core reading hit 2%. The Retail Price Index in the same period hit 3.3% as expected. However, a hawkish US Federal Reserve sent the pair down to the lowest in over a month. The US Federal Reserve monitors inflation risks that could turn out to be higher and more persistent than they had expected. The pressure on the pound also exerts Brexit tensions related to the Northern Ireland Protocol. The UK won’t publish macroeconomic data on Thursday. The local resistance level can be seen at 1.4000. If the price reaches this level and rebounds, it could trigger a decline to 1.3936.
USD/CAD: The US dollar rose against the Canadian dollar on Wednesday due to the FOMC’s updated Summary of Economic Projections provided a boost to the greenback. According to the Fed’s dot plot, the number of FOMC policymakers who expect the first-rate hike in 2022 rose to seven from four in March. More importantly, thirteen policymakers are now expecting a rate hike in 2023, compared to only seven in March. Meanwhile, the Fed left the benchmark interest rate without changes as many expected. As for the Canadian macroeconomic statistics, the Consumer Price Index showed a positive value, better than expectations. The local support level can be seen at 1.2260. If the pair dips to this level and rebounds from it, it can trigger the pair’s growth to 1.2310.
BRENT: Oil prices fell a little on Wednesday due to the stronger US dollar. However, Brent reached its highest since April 2019 before running into profit-taking. It seems that oil price losses were limited because the data from the Energy Information Administration showed that US crude oil stockpiles dropped sharply last week as refineries boosted operations to their highest since January 2020, signaling a continued improvement in demand. Also, refinery throughput in China, the world’s second-largest oil consumer, rose 4.4% in May from the same month a year ago to a record high, which provided an additional boost to oil prices. The local support level can be seen at $73.20. If the pair slips to this level and rebounds, it can trigger growth to $75.30.