Early on Thursday, Sterling jumped to a three-week high of 1.2975 against the US Dollar after Bank of England Governor Mark Carney said that the Bank was likely to raise interest rates as the British economy comes closer to operating at full capacity, and will debate this “in the coming months.” Carney said that policymakers would need to look at the extent to which stronger business investment offset a slowdown in consumption, as well as growth in wages and labor costs.
Meanwhile, Crude Oil inched higher for a sixth straight session to its highest since June 19 on a decline in US output, but ongoing worries about global oversupply continued to weigh. The EIA said that Crude Stocks rose 118,000 barrels last week, while weekly production declined 100,000 barrels per day to 9.3 million bpd, the biggest decline in weekly output since July 2016.
As for Gold prices, they edged higher yesterday as the US Dollar weakened against major currencies on bets that central banks in Europe were preparing to scale back monetary stimulus, but the Bullion’s gains were capped by a surge in equities. Hawkish comments from European Central Bank President Mario Draghi, and Bank of England Governor Mark Carney have raised expectations of a tighter monetary policy in Europe.
Brazil’s real firmed on Wednesday after the resignation of a Senate leader and harsh critic of President Michel Temer seen as boosting the chances that Brazilian officials will approve a labor overhaul. A growing corruption scandal has fueled bets about delays to the implementation of planned reforms to Brazil’s pension system and labor laws, which investors say are necessary to help end the country’s worst recession ever.