Demand for the US Dollar Is Still High. Meetings of the Central Banks Are in the Focus of Attention

Tension in the US-China trade relations has weakened and demand for the US currency has resumed. Yesterday, the Fed Chairman Jerome Powell said that the regulator intended to maintain a gradual increase in the key interest rate. The official believes that the unemployment rate in the US is gradually decreasing, and inflation is approaching the target level. The US dollar index (#DX) closed in the positive zone (+0.05%) yesterday.

Today, meetings of the Central Banks of Switzerland and the UK will be the key events. It is expected that regulators will leave interest rates unchanged at -0.75% and 0.50%, respectively. We recommend paying attention to the comments of the Central Banks representatives. During the Asian trading session, a report on GDP in New Zealand for the first quarter has been published, which counted to +0.5%, as experts expected.

The "black gold" prices are declining. At the moment, futures for the WTI crude oil are testing a mark of $65.25 per barrel.

Market Indicators

Yesterday, there was a variety of trends in the US stock market: #SPY (+0.17%), #DIA (-0.17%), #QQQ (+0.71%).

The 10-year US government bonds yield is rising. At the moment, the indicator is at the level of 2.93-2.94%.

- Swiss National Bank interest rate decision at 10:30 (GMT+3:00);
- Bank of England interest rate decision at 14:00 (GMT+3:00);
- Philadelphia Fed manufacturing index at 15:30 (GMT+3:00).

We also recommend paying attention to the speech by the Bank of England Governor.

by JustMarkets, 2018.06.21

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.