The S&P 500 has updated its records after the publication of the minutes of the Fed meeting. The dollar has stabilized

In the American session on Wednesday, traders were mainly focused on the protocols of the Federal Reserve System, which didn’t imply a rapid change in stimulus measures. According to the published document, the board members unanimously concluded that inflationary risks are short-term. It will take "some time" before significant progress is made towards the goals of maximum employment and price stability. Stock futures reacted positively to the protocol, with the benchmark S&P 500 renewed its year high by rising above 4073.

The dollar halted its fall against most currencies amid renewed unrest concerning the vaccination program in Europe. According to some investors, the bullish euphoria in sterling may end soon. The market was extremely optimistic at the start of the vaccination program. But, since all the positive points have already been taken into account, and new reports of blood clots still continue to call the safety of AstraZeneca into question, the interest in the British currency has decreased. Over the past two days, the pound has lost about 200 points against the dollar.

Treasuries have stabilized. Treasury yield is near 1.66%, but US 2-year bonds continue to fall, putting pressure on the dollar. Following the publication of the Fed's minutes, the yield fell to 0.147%, reflecting a rate cut on faster monetary policy tightening.

Japanese stocks tumbled amid fears of stricter measures to contain the rise in infected people in Japan. European stock futures followed the growth of the S&P 500. Tech giants including Apple Inc. dominated in Nasdaq 100, which also closed the day in the green zone.

Main market quotes:

S&P 500 (F) 4,085.88 +15.88 (+0.39%)

Dow Jones 33,446.26 +16.02 (+0.05%)

DAX 15,234.15 +57.79 (+0.38%)

FTSE 100 6,911.75 +26.43 (+0.38%)

USD Index 92.323 -0.149 (-0.16%)

Important events:
  • – US Initial Jobless Claims at 15:30 (GMT+3);
  • – Speech by Chairman Jerome H. Powell at 19:00 (GMT+3).

by Justforex, 2021.04.08

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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