The US Dollar Has Become Stable Before the Fed Meeting

Last week, the US dollar recovered some losses against a basket of world currencies. At the moment, investors have taken a wait-and-see attitude before the Fed meeting. Some experts believe that the head of the Central Bank, Jerome Powell, may use this meeting to give signals about a possible reduction in interest rates in the current year. According to the CME FedWatch Tool, more than 60% of financial market participants believe that the Fed may cut interest rates at a meeting in July.

The British pound has dropped significantly against the US dollar due to growing concerns about the fact that Boris Johnson, the leading candidate for the post of British Prime Minister, could lead the UK to exit from the European Union without a deal with Brussels. Johnson, a former foreign secretary, gained Matt Hancock's support, that strengthened his position in the fight for leadership. This news surprised investors since Johnson was the face of the official campaign for Brexit in the 2016 referendum and promised to exit the UK from the EU with or without an agreement.

The bearish sentiment is still prevailing in the "black gold" market. At the moment, futures for the WTI crude oil are testing the mark of $51.85 per barrel. At 23:30 (GMT+3:00) a report on the API weekly crude oil stock will be published.

Market Indicators

Yesterday, the bullish sentiment was observed in the US stock market: #SPY (+0.04%), #DIA (+0.07%), #QQQ (+0.60%).

The 10-year US government bonds yield has been declining. Currently, the indicator is at the level of 2.05-2.06%.

- German ZEW economic sentiment index at 12:00 (GMT+3:00);
- Data on Eurozone inflation at 12:00 (GMT+3:00);
- Statistics on the real estate market in the US at 15:30 (GMT+3:00).

We also recommend paying attention to the speech by the ECB President Draghi.

by JustMarkets, 2019.06.18

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.