Financial Market Participants Have Taken a Wait-and-See Attitude Before Meetings of the Bank of Canada and the Fed

The US dollar fell slightly against a basket of currency majors. The dollar index (#DX) closed yesterday's trading session in the red zone (-0.06%). Financial market participants have taken a wait-and-see attitude before meetings of the Bank of Canada and the Fed, which will be held today. Donald Trump criticized the Fed's policy on Twitter again: "The Fed doesn't have a clue! We have unlimited potential, only held back by the Federal Reserve." The regulator is expected to reduce the key interest rate range by 25 basis points to 1.50-1.75%. Experts forecast that the Bank of Canada will keep the key marks of monetary policy at the same level. We recommend paying attention to the comments by representatives of the Central Banks.

The British pound has become stable amid some clarity concerning Brexit. On Tuesday, Prime Minister Boris Johnson sought parliamentary approval for an early vote to break the Brexit deadlock. As a result, on December 12, elections will be held in Parliament to resolve the situation with Brexit. On Friday morning, December 13, the election results will be announced. If neither party wins, the uncertain situation concerning Brexit will preserve.

The "black gold" prices are consolidating. Currently, futures for the WTI crude oil are testing the $55.45 mark per barrel. At 16:30 (GMT+2:00), EIA crude oil inventories will be published.

Market Indicators

Yesterday, there was a variety of trends in the US stock markets: #SPY (-0.03%), #DIA (+0.02%), #QQQ (-0.77%).

The 10-year US government bonds yield has increased slightly. At the moment, the indicator is at the level of 1.83-1.84%.

• - German unemloyment change at 10:55 (GMT+2:00);
• - ADP nonfarm employment change in the US at 14:15 (GMT+2:00);
• - US GDP data at 14:30 (GMT+2:00);
• - Bank of Canada interest rate decision at 16:00 (GMT+2:00);
• - Fed interest rate decision at 20:00 (GMT+2:00).

by JustMarkets, 2019.10.30

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.