Today at 13:00 (GMT+2) interest rate decision by the Bank of England will become known. It is expected that the rate will be left at the previous level of 0.5%..

However, comments, which will be made on this decision, may affect movement in the Pound and the total finance market. Through cross-pairs with the Pound the movement in the Pound will affect other currencies.

Decision of the Bank of England and comments by Mark Carney at 13:45will affect cross-pair EUR/GBP and consequently, the Euro.

The UK is part of the EU and its economy is closely linked to the economy of Eurozone. Uncertainty about referendum and future membership of the UK in the EU negatively affects economies of these countries. If British people vote for the exit from the EU, British and European stock markets will have a turn. At the moment it is very difficult to predict future of the GBP and Euro.

Today, if the Pound starts to decline after the interest rate decisions and comments by Mark Carney, cross- pair EUR/GBP will grow as well as Euro in the pair EUR/USD.

At 11:00 (GMT+2) Eurostat data on industrial production in Eurozone will be released. It is expected that that the report will show zero growth in March and the rise of 1.1% on annual basis. If the data exceeds the forecast, it will support Euro.

At 14:30 US news will be released, including prices of export and import for April.

Later, at 17:45 and 19:30 representatives of the US Fed and FOMC Mr. Rosengren and Mrs. Esther George will make speeches. Note that Mrs. Esther George supports monetary tightening policy in the USA.

If the pair EUR/USD declines today, it will be just a minor decline due to support from cross-pair EUR/GBP. The rise in oil prices will also support Euro in the pair EUR/USD.

EUR/USD: The pair is likely to decline slightly.  Fundamental analysis of 12.05.2016.

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