Investors Have Taken a Wait-and-See Attitude Before the Fed Meeting. The British Pound Is Still Under Pressure

The US dollar has updated two-month highs in expectation of the Fed meeting. The US dollar index (#DX) closed in the green zone (+0.05%). Investors have taken a wait-and-see attitude before the Fed’s decision on a key interest rate. According to experts, the regulator will reduce the interest rate by 25 basis points – from 2.50% to 2.25% per annum. However, yesterday, US President, Donald Trump, wrote on his Twitter that a small rate cut would not be enough. The President criticized and raised pressure on the US Central Bank again, having accused it of being too cautious compared to China and Europe.

The British pound has updated two-year lows due to concerns about no-deal Brexit. Michael Gove, an official in the new British government, said it was highly likely that the UK would exit from the EU on October 31 without a deal that could cushion the blow to the country's economy. However, British Prime Minister, Boris Johnson, has repeatedly said that there was only one chance out of a million that Britain would leave the EU without a deal. At the same time, there is no time for new talks before Brexit.

The Japanese yen shows a variety of trends after the meeting of the Bank of Japan. Following the meeting, the Central Bank of Japan left the key marks of monetary policy at the same level. However, the regulator has worsened forecasts for economic growth and consumer prices in the country. The Bank of Japan will also be ready to take decisive measures to support the economy in case of significant risks.

The bullish sentiment prevails in the "black gold" market. At the moment, futures for the WTI crude oil are testing the mark of $57.40 per barrel. At 23:30 (GMT+3:00), API weekly crude oil stock will be published.

Market Indicators

Yesterday, there was a variety of trends in the US stock markets: #SPY (-0.18%), #DIA (+0.10%), #QQQ (-0.34%).

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

- Personal spending in the US at 15:30 (GMT+3:00);
- CB consumer confidence index in the US at 17:00 (GMT+3:00);
- Pending home sales index in the US at 17:00 (GMT+3:00).

by JMarkets, 2019.07.30

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.