Throughout the European session, the US dollar continued rising against its rivals. The GBP/USD pair has dropped by over 1% to trade near 1.4070 level. The comments made by Mark Carney undermined the sterling. In the yesterday interview to BBC, the Bank of England Governor did not touch on the monetary policy issue, thus increasing the concerns of the traders that the key interest rate would be left unchanged at the May meeting. Today, the MPC member Michael Saunders delivered his inflation forecast, speaking at the University of Strathclyde in Glasgow.
The official said that consumer prices in the country will be under considerable pressure in the near future. This means further monetary actions of the bank would be limited. Traders were discouraged by the news. The single European currency has also been declining against the greenback today. Experts link the weakness of the euro to a lack of significant data releases from the euro area. It is clear that the European assets will close the trading week in the negative territory against the US dollar.