The US Federal Reserve Raised the Range of the Key Interest Rates

During yesterday's trading, there was a high volatility and trading activity. The US published weak statistics on inflation and retail sales. In the European trading session, the US dollar sharply weakened against the major world currencies. At the same time, the Fed raised the key interest rate range by 25 basis points to 1.00-1.25%. The regulator noted positive changes in the economy and stability of the labor market. In the near future, the Central Bank intends to reduce the volume of assets on its balance. These events supported the US currency.

Today, participants of the financial markets are waiting for the meeting of the National Bank of Switzerland and the Bank of England. At the moment, most experts believe that regulators will leave interest rates unchanged at -0.75% and 0.25%, respectively. At the same time, it is necessary to pay attention to the updated economic forecasts, comments, and rhetoric of the Central Banks representatives.

In the first quarter of 2017, New Zealand's GDP grew by 0.5%, which is less than the forecasted value of 0.7%. The Australian Bureau of Statistics published an optimistic report on the labor market.

Market Indicators

Yesterday, US stock indices showed a variety of trends: #SPY (-0.13%); #DIA (+0.22%); #QQQ (-0.43%).

The 10-year US government bonds yield demonstrates negative dynamics. At the moment the indicator is at the level of 2.14%.

The dollar index (#DX) finished the trading session with a slight decrease (-0.02%).

Today we recommend you to pay attention to the following events:

  • - The decision of the Central Bank of Switzerland on monetary policy at 10:30 (GMT+3:00);
  • - Statistics on retail sales in the UK at 11:30 (GMT+3:00);
  • - Bank of England meeting at 14:00 (GMT+3:00);
  • - The index of production activity from the Federal Reserve Bank of Philadelphia at 15:30 (GMT+3:00).
  • 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.