GBP/USD: The Great Britain pound rose against the US dollar on Wednesday amid the reports that COVID-19 cases in Britain dropped for the sixth day in a row. This has raised investor hopes that the Bank of England could be less dovish than expected when it meets next week. England canceled quarantine rules for fully-vaccinated visitors from the European Union and the United States has also supported the pound’s gains. Meanwhile, the Federal Reserve left the key rates unchanged at a record low, as well as the pace of bond-buying in its latest monetary policy. US Fed Chair Jerome Powell said that the US economy remained far from the dual mandates of stable prices and maximum employment, despite substantial further progress. The local resistance level can be seen at 1.3935. The breakout up can trigger growth towards 1.3995.
USD/CAD: The US dollar fell against the Canadian dollar on Wednesday. But the rise of the Canadian dollar was limited by data showing that national inflation rose less than expected in June. Strengthening of oil prices and chatter over the procedural passage of the US infrastructure spending bill are also supporting the Canadian dollar. It’s worth mentioning that the previous day’s Canadian Consumer Price Index figures for June mostly matched market consensus and offered no challenges to the Bank of Canada’s hawkish view, which in turn were ignored ahead of the Fed. Today we are expecting data on US Gross Domestic Product in the second quarter (preliminary values) and the Initial Jobless Claims that shows a measure of the number of people filing first-time claims for state unemployment insurance. The local support level can be seen at 1.2505. A breakout below could take the pair towards 1.2445.
WTI: The oil prices steadied after US crude and fuel stockpiles posted strong declines, signaling that peak summer demand remains robust despite a resurgence of Covid-19. Crude inventories dropped more than expected last week to the lowest level since January 2020, while supplies of distillates – a category that includes diesel – slid the most since April, according to a government report. US crude has rallied nearly 24% in the quarter, and while prices of transportation fuels tend to pick up in tandem, prices of other products like naphtha, asphalt and propane tend to lag the increase, squeezing margins.