On Wednesday, as investors were waiting for key macro-economic data scheduled for release next week to get insights on the state of the British economy as a result of the Brexit, the pound dropped and went back below $1.30 touching a near two-and-a-half-week low. It was traded at $1.2998, which is an inch close to its Tuesday’s low of $1.2953.
Although there have been speculations regarding the possibility of the Bank of England raising interest rate this year, Viraj Patel, ING currency strategist, said that a rate hike was pretty much a 2018 story, as the political risk for the British pound has not quite faded yet. The risk, Viraj Patel was talking about, consists of the Tory party conference and the Brexit talks which will take place in October of 2017.
Thursday, as the United States have experienced a massive fall in their crude inventories, the prices of oil climbed up in early Asian trading. Global benchmark, Brent crude futures traded at $52.78 per barrel, 0.15% or 8 cents higher. Meanwhile, the United States West Texas Intermediate climbed by 0.2%, or 8 cents, and traded at $49.64 a barrel, after rising 0.8% on the previous session.
U.S. crude inventories were massively depleted by 6.5 million barrels last week. Experts were caught by surprise as they expected a decrease of no more than 2.7 million barrels.