British Prime Minister Theresa May described Monday's explosion in Manchester city as "callous terrorist attack" that killed 22 people and injured 59 others in the city's hospitals. The ISIS has claimed responsibility but has not provided any evidence.
The pound was not affected by this incident and remained in the range of yesterday's trading near the levels of 1.30, while May added that the police will seek to bring people involved in the attack and bring them to justice as soon as possible.
With the opening of markets in the United States today, US stocks rose slightly in the light of the news about the budget plan that Trump intends to provide, which aims to reduce government expenditures, including the health care program and food aid programs for the poor by about 3.6$ billion and reduce the budget deficit over the next decade.
In Europe, the euro rose to a six-month high supported by positive production data and more hawkish comments from European policymakers, but quickly abandoned these gains in the wake of comments by ECB President Mario Draghi that the EU might lose could lose some of its supervision and oversight of clearing activities once Britain leaves the bloc. The EURUSD currently trades around 1.1230 levels.
Turning to oil markets, prices rose during the day as markets expectations of a possible extension of the cut-off agreement, possibly until March 2018, when OPEC meets with a number of non-OPEC oil producers including Russia on Thursday, after a White House proposal suggested selling off half the country's huge oil stockpile.
US Crude is currently trading near a strong resistance level at 51.40$ a barrel and is expected to move above 52$ directly. While Brent crude is trading at 54$ a barrel
