Investors Took a Wait-and-See Attitude Before the Speech of the Head of the Federal Reserve

The dollar keeps the current levels against the basket of the major currencies. Investors took a wait-and-see attitude before the speech of the new head of the Federal Reserve, Jerome Powell, on Tuesday and Thursday. Financial markets participants hope to get any clues relative to the acceleration of the interest rate growth. Most investors expect that the interest rate will be increased in March. The US dollar index (#DX) slightly decreased yesterday (-0.04%).

Demand for the yen is rising after it became known that the Minister of Economy of Japan, Toshimitsu Motegi, expects further growth in the consumer price index. The pound also increases due to the softer position of the Labour Party towards Brexit. Yesterday, leader of the Labour Party, Jeremy Corbyn, said that his party supported the idea that the UK should remain in the customs union with the EU after the country left the union.

The "black gold" prices are consolidating. Futures for the WTI crude oil are testing $63.75 per barrel. At 23:30 (GMT+2:00) there will be data on the API weekly crude oil stock.

Market Indicators

Yesterday, there were aggressive purchases in the US stock market: #SPY (+1.16%), #DIA (+1.59%), #QQQ (+1.33%).

At the moment, the 10-year US government bonds yield is at the level of 2.85-2.86%.

- Statistics on durable goods orders at 15:30 (GMT+2:00);
- CB consumer confidence at 17:00 (GMT+2:00).

The press conference of the head of the Federal Reserve Bank of Germany Jerome Powell is in the focus of attention.

by JMarkets, 2018.02.27

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.