Daily Afternoon Report 08.06.2016

The dollar pushed lower to a one-month trough against the other major currencies on Wednesday, as uncertainty over the timing of the next U.S. rate hike continued to weigh heavily on the greenback.

Sentiment on the greenback remained fragile after Federal Reserve Chair Janet Yellen indicated on Monday that the U.S. central bank won’t be raising interest rates until uncertainty over the economic outlook is resolved.

Yellen said she expects the economic recovery to continue but gave no indications on the timing of a next rate increase.

The pound strengthened after the U.K. Office for National Statistics earlier said that industrial production rose 2.0% in April after a 0.3% increase in March, the largest monthly increase since July 2012.

Manufacturing output rose 2.3% after a 0.1% increase in March, in what was also the fastest monthly increase since July 2012.

The pound’s gains were held in check however amid ongoing uncertainty over whether Britain will remain in the European Union or not at a referendum on June 23.

The commodity currencies remained supported as oil prices continued to rise for a third consecutive session on Wednesday amid speculation weekly supply data due later in the session will show U.S. crude inventories fell at a faster pace than expected last week.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.26% at 93.59, the lowest since May 5.