The pound fell to the weakest level in a month versus the euro as a report showed the U.K. inflation rate stayed near a five-year low, adding to speculation the Bank of England will delay increasing interest rates.
Regardless of the outcome of the Fed meeting, USDJPY is likely to see substantial volatility. After surging to a new six-year high above 107.00 last week, rates have consolidated in a tight 55-pip range for the last four days.
After threatening for the past few weeks, the GBP/USD finally broke out to a conclusive 6-year high above the 1.70 level this morning and, with rates currently trading around 1.7100, the breakout appears likely to hold for now.
U.S. traders are already counting the hours to a long weekend of barbecues, boats, and fireworks on Friday’s Independence Day holiday. However, the market will be erupting with its own fireworks throughout this data-filled week.