The US Dollar Has Weakened Before the Fed's Meeting

During yesterday's trading, the US dollar weakened slightly against the basket of world currencies. The dollar index (#DX) closed trading in the negative zone (-0.32%). The United States published mixed economic reports on the real estate market. In August, the number of issued building permissions increased by 5.7%. At the same time, the volume of construction of new houses fell by 0.8%. The statistics on trade also had an ambiguous character.

Today the attention of the financial markets participants is focused on the meeting of the Federal Reserve System. Most likely, the Central Bank will leave the range of the key interest rate at the previous level of 1.00-1.25%. The regulator will publish updated economic forecasts and may indicate the time frames of the next interest rate hike.

The oil quotes continue to recoup. At the moment, futures for the WTI crude oil are being traded near $50.5 per barrel.

Market Indicators

Yesterday the bullish sentiment prevailed on the US stock market. The main indices closed in the positive zone: #SPY (+0.10%), #DIA (+0.19%), #QQQ (+0.17%).

Since the beginning of this week, the 10-year US government bonds yield demonstrates a positive trend. At the moment the indicator is at the level of 2.23-2.24%.

• - A report on retail sales in the UK at 11:30 (GMT+3:00);
• - Sales in the secondary housing market in the US at 17:00 (GMT+3:00);
• - Crude Oil Inventories in the US at 17:30 (GMT+3:00);
• - The decision on the Fed's interest rate at 21:00 (GMT+3:00).

by JMarkets, 2017.09.20

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.