Forex Weekly Round Up 15 June 2015 – 19 June 2015

Consumer confidence rose more than forecast in June, as Americans were the most upbeat about their wage prospects in seven years. Preliminary consumer sentiment index increased to 94.6, topping all estimates.

The Dollar lost ground on Wednesday night after a statement from the Federal Open Market Committee (FOMC) signaled a pickup in the economy is keeping it on track to raise interest rates this year, though subsequent increases are likely to be more gradual than anticipated.

The week began with an extremely quiet day for the pound, with analysts being entirely sentiment driven. This was realised in the markets with the pound losing half a cent against both the EUR and USD during the morning session, with no data to support the pound.

Inflation rose by 0.1% in the year to May according the Office for National Statistics, up from -0.1% a month earlier and ending a brief spell of deflation.

The EUR had a good start to the week, gaining against a host of its major counterparts. Greek Finance Minister Varoufakis said that there will be no chance of a ‘Grexit’, but is seeking an extended redemption period for Greek debt, according to reports.

On Thursday International Money Fund (IMF) boss Christine Lagarde warned there is “no period of grace” for Greece over a debt repayment deadline. Lagarde said Greece would be in default on its loans from the IMF if it failed to make a €1.6bn payment on 30 June.

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