Earlier today, the latest UK jobs report showed that the unemployment rate dropped to the lowest since 1975, which pushed the British pound higher against the greenback. Despite this improvement, currency bulls didn’t manage to hold gained levels, which resulted in a pullback. How low could the GBP/USD go in the coming days?
The U.S. dollar remained on the defensive early Thursday, after yesterday’s declines led by increased uncertainty over another U.S. rate hike in 2017 and President Donald Trump’s fiscal agenda after abolishing the Manufacturing Council and Strategy & Policy Forum.
Crude oil prices were a dog yesterday as the summer doldrums and rising U.S. oil production failed to inspire the market despite another near record crude oil draw. The market also fell on a report that the United States will sell more oil out of the Strategic Petroleum Reserve. Shale hopes may run high as we get into shoulder season yet the drop in oil inventory will start to become a concern as soon as the normal players start paying attention to massive crude drawdowns and near record global demand.