Investors Expect the Fed Meeting

Currency majors demonstrate a variety of trends. The dollar index (#DX) has become stable near monthly lows before the Fed meeting. The Central Bank is expected to reduce its key interest rate range by 25 basis points to 1.75%-2.00%. We recommend paying attention to updated economic forecasts and comments by the Fed representatives. The regulator may indicate a further rate of monetary policy adjustment. It should be recalled that earlier Donald Trump repeatedly criticized the Fed for a “strong” dollar and called for the beginning of a long and aggressive cycle of lowering interest rates.

During the Asian trading session, optimistic data on the trade balance of Japan have been published. Financial market participants continue to monitor the trade negotiations between Washington and Beijing, the Brexit process, as well as the situation in the "black gold" market. Today, investors will assess important economic reports from the UK, the Eurozone and the US.

Oil quotes have been declining after a sharp rally since the beginning of this week. At the moment, futures for the WTI crude oil are testing the $58.80 mark per barrel.

Market Indicators

Yesterday, the main US stock indices closed in the positive zone: #SPY (+0.25%), #DIA (+0.14%), #QQQ (+0.48%).

The 10-year US government bonds yield has been declining. At the moment, the indicator is at the level of 1.77-1.78%.

• - Data on inflation in the UK at 11:30 (GMT+3:00);
• - Consumer price index in the Eurozone at 12:00 (GMT+3:00);
• - Statistics on the real estate market in the US at 15:30 (GMT+3:00);
• - Data on inflation in Canada at 15:30 (GMT+3:00);
• - Fed interest rate decision at 21:00 (GMT+3:00).

by JMarkets, 2019.09.18

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.