Investors Assess FOMC Minutes

The US dollar strengthened against a basket of major currencies. The dollar index (#DX) closed yesterday in a positive zone (+0.27%). Yesterday, optimistic economic data from the US were published. So, the number of issued building permits increased to 1,551M in January instead of 1,450M. The producer price index rose by 0.5% in January instead of 0.1%. Financial market participants also assess FOMC minutes. The Fed is optimistic about the prospects for the US economy. The regulator plans to keep interest rates at current levels. Central Bank officials also believe that the pneumonia epidemic in China is a new risk for the global economy.

China reported a sharp decrease in the number of new infections, but this could be due to changes in the diagnosis of the virus. Investors are still concerned about the virus spread since an outbreak was recorded in South Korea.

The "black gold" prices continue to rise. Currently, futures for the WTI crude oil are testing the $53.65 mark per barrel. At 18:00 (GMT+2:00), US crude oil inventories will be published.

Market indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+0.48%), #DIA (+0.39%), #QQQ (+0.96%).

The 10-year US government bonds yield is consolidating. At the moment, the indicator is at the level of 1.54-1.55%.

News background for 20.02.2020:
  • - Retail sales in the UK at 11:30 (GMT+2:00);
  • - ECB monetary policy meeting account at 14:30 (GMT+2:00);
  • - Philadelphia Fed manufacturing index at 15:30 (GMT+2:00).

by JustForex, 2020.02.20

We advise you to get acquainted with the daily forecasts for the major currency pairs.

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.

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