The Fed Has Kept a Range of Key Interest Rates. Demand for the US Dollar Is Still High

The US currency has been growing against the basket of major currencies. Yesterday, the Fed meeting was held, at which the regulator decided on the interest rate. As the experts expected, the interest rate remained unchanged at the level of 2.00-2.25%. The Fed also said that the US economy and labor market were strong, and it intends to adhere to a further gradual increase in interest rates. The next meeting and decision on the Fed interest rate will be held in December. The US dollar index (#DX) has updated the weekly high and closed in the positive zone (+0.71%).

Investors' attention is also focused on Brexit. The European Commission intends to prepare for a tough version of the UK exit from the EU if London and Brussels do not reach an agreement. Starting from November 20, the European Commission will organize special seminars for EU member states. In total, there will be 12 such seminars. Today, investors expect important economic statistics from the UK and the US.

The "black gold" prices have fallen significantly. At the moment, futures for the WTI crude oil are testing a mark of $60.50 per barrel.

Market Indicators

Yesterday, there was a variety of trends in the US stock market: #SPY (-0.18%), #DIA (+0.12%), #QQQ (-0.64%).

At the moment, the 10-year US government bonds yield is at the level of 3.21-3.22%.

- Data on the UK GDP at 11:30 (GMT+2:00);
- The volume of production in the UK manufacturing industry at 11:30 (GMT+2:00);
- Producer price index in the US at 15:30 (GMT+2:00).

by JMarkets, 2018.11.09

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.