Currency Majors Are Consolidating. The Fed Meeting Is in the Focus of Attention

At the moment, the main currency pairs have become stable before the announcement of the results of the Fed meeting. Recent economic releases from the US were rather weak. Most financial market participants believe that the regulator will keep the range of key interest rates at the same level of 2.25%-2.50%. The Fed will adhere to a "patient" approach concerning monetary policy tightening. We recommend paying attention to the comments by representatives of the Central Bank, as well as to updated economic forecasts.

Yesterday, the Office for National Statistics published ambiguous data on the labor market. In January, the average wage level rose by 3.4%, which was higher than market expectations at 3.2%. The unemployment rate fell from 4.0% to 3.9%. At the same time, the Claimant count change increased to 27.0K in February compared to the expectations of experts 13.1K. The trade negotiations between Washington and Beijing have escalated again. According to Bloomberg, some US officials expressed concern that China might refuse to accept US demands.

The "black gold" prices are consolidating. At the moment, futures for the WTI crude oil are testing the mark of $59.40 per barrel. We recommend paying attention to the data on the EIA crude oil inventories at 16:30 (GMT+2:00).

Market Indicators

Yesterday, the main US stock indices showed variety of trends: #SPY (+0.02%), #DIA (-0.04%), #QQQ (+0.34%).

The 10-year US government bonds yield is at the level of 2.59-2.60%.

- Consumer price index in the UK at 11:30 (GMT+2:00);
- Fed interest rate decision at 20:00 (GMT+2:00);
- New Zealand GDP at 23:45 (GMT+2:00).

by JMarkets, 2019.03.20

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.