The US dollar index decreased on Monday, BoE November interest rate decision caused significant losses for the GBP

Construction Activity in Poland Contracts in May: Focus on Building Decline and Infrastructure Investment

Summary:

  • The US data released on Friday was mostly encouraging as job growth exceeded expectations.
  • Friday's release of UK GDP statistics, it might go even further and return to lows from early October.

EU economy produced 0.2% growth

The market is reflecting bullish signals for this currency pair. In Q3, the EU economy demonstrated that it could produce growth of 0.2% Q/Q. The tiny gain in Q3 depicts the same larger picture, which is that growth has slowed and a recession is still in effect, despite the fact that it appears to be rather hopeful. One of the key indications from a nationwide survey demonstrates how manufacturing has been under tremendous strain as a result of the crisis of rising energy prices. The US data released on Friday was mostly encouraging as job growth exceeded expectations. The decrease in the dollar index, which has persisted into today's European session, was not justified by the minor increase in unemployment statistics. The market's forecast of a 50 bp increase from the Federal Reserve's December meeting is the only thing that has changed.

The US dollar index decreased on Monday, BoE November interest rate decision caused significant losses for the GBP  - 1

EUR/USD Price Chart

BoE November interest rate decision resulted in losses for the GBP

The market is reflecting mixed signals for this currency pair. The Bank of England (BoE) interest rate decision in November resulted in significant losses for the Pound to Euro exchange rate, but if the market is still wary of Sterling going into Friday's release of UK GDP statistics, it might go even further and return to lows from early October. After the BoE stated, based on its most recent forecasts, that it believes it has likely already done enough with interest rates to ensure that inflation returns to the 2% target in the coming years, sterling suffered significant losses against most major currencies last week and fell almost 2% against the Euro.

In an open conflict with market bets that borrowing costs could climb to 4.7% or more in the coming months, the BoE additionally stated that investors would be foolish to anticipate Bank Rate to rise from November's recently boosted level of 3%.

The US dollar index decreased on Monday, BoE November interest rate decision caused significant losses for the GBP  - 2

EUR/GBP Price Chart

AUD is weaker on monday

The Australian Dollar is weaker at the beginning of a new week that may focus on events in China, where officials are showing a willingness to fight rumors that they are likely to reevaluate their zero-Covid policy. The National Health Commission (NHC) of China reaffirmed its commitment to eradicating Covid-19 during a news conference on Saturday, cautioning that the situation was likely to worsen and become "more complex" as the nation entered the winter flu season. The Australian lagged behind.

The GBP/AUD currency rate experienced its biggest weekly decrease since the week of February 28 as investors bet on a Chinese economic revival, falling 2.83% for the week.

The US dollar index decreased on Monday, BoE November interest rate decision caused significant losses for the GBP  - 3 GBP/AUD Price Chart

Sources: finance.yahoo.com, poundsterlinglive.com, dailyfx.com

Construction Activity in Poland Contracts in May: Focus on Building Decline and Infrastructure Investment

Rebecca Duthie

Remote Editor and writer Intern
FXMAG.COM

Rebecca has a bachelors degree in Investment Management, a Post Graduate Diploma in Financial Planning and is currently enrolled in a Masters program in International Management with a Specialization in International Finance.