Fed Interest Rate Decision Is in the Spotlight

The US currency is consolidating against a basket of currency majors. The US dollar index closed in the green zone (+0.19%) yesterday. Investors have taken a wait-and-see attitude before the Fed meeting to be held today. Experts are confident that the regulator will keep its "dovish" attitude. They also expect that the Fed's new softer approach to monetary policy will affect certain measures to support the US economy.

Yesterday, optimistic data on the UK economy were published. Thus, the average earnings index + Bonus decreased by 1.0% in July, while experts expected a decline by 1.3%. The number of unemployment benefits increased by 73.7K in August instead of 100.0K. The Bank of England meeting will be held tomorrow, during which interest rate decision will be made. According to forecasts, the indicator will remain unchanged at 0.10% per annum.

The Japanese yen is growing. Today, the House of Representatives voted to elect Yoshihide Suga as the country's Prime Minister. It should be recalled that Japanese Prime Minister Shinzo Abe resigned at the end of August for reasons of ill health.

The "black gold" prices have been growing. At the moment, futures for the WTI crude oil are testing the $39.15 mark per barrel. At 17:30 (GMT+3:00), US crude oil inventories will be published.

Market indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+0.51%), #DIA (+0.02%), #QQQ (+1.42%).

The 10-year US government bonds yield is consolidating. The indicator has reached 0.67-0.68%.

The news feed for 2020.09.16:
  • - UK consumer price index at 09:00 (GMT+3:00);
  • - US retail sales data at 15:30 (GMT+3:00);
  • - Fed interest rate decision at 21:00 (GMT+3:00).

by Justforex, 2020.09.16

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.

Open Account

Get Free Analytics

* required fields