Investors Assess the Results of the Brexit Vote. We Expect the Fed Meeting

The US dollar slightly strengthened against a basket of major currencies during yesterday's trading session. The US dollar index (#DX) closed in the positive zone (+0.10%). Financial market participants expect the Fed interest rate decision, as well as signals on the further development of trade relations between the US and China. It is expected that the regulator will keep the key marks of monetary policy at the same level. It should be recalled that earlier the Central Bank signaled a slowdown in raising interest rates in the current year. We recommend paying attention to the comments by the Fed representatives.

Last night the UK Parliament voted on the Brexit deal. Several amendments were proposed. We would like to mention some of them. So, the House of Commons voted against the amendment to postpone Brexit for up to 9 months if EU and Great Britain don't close a deal. Also, members of the House of Commons voted for the amendment to prevent Brexit without an agreement with the EU. Thus, a British Labour Party politician, Yvette Cooper, proposes to adopt a bill, according to which British Prime Minister, Theresa May, will be obliged to delay Brexit if members of the British parliament do not close a deal with the EU until February 26.

Also yesterday, the US consumer confidence index was published, which counted to 120.2 in January and turned out to be worse than the forecasted value of 124.7. The figure for December was also revised downward from 128.1 to 126.6. This index allows assessing the sentiment of the US consumers relative to current economic conditions. Today, during the Asian trading session, optimistic data on inflation have been published in Australia, which supported Aussie.

The bullish sentiment is prevailing in the "black gold" market. At the moment, futures for the WTI crude oil are testing the mark of $53.40 per barrel. At 17:30 (GMT+2:00), a report on crude oil inventories will be published in the US.

Market Indicators

Yesterday, there was a variety of trends in the US stock market: #SPY (-0.13%), #DIA (+0.25%), #QQQ (-0.94%).

The 10-year US government bonds yield has continued to decline. Currently, the indicator is at the level of 2.71-2.72%.

- ADP nonfarm employment change at 15:15 (GMT+2:00);
- GDP data at 15:30 (GMT+2:00);
- Pending home sales at 17:00 (GMT+2:00);
- Fed interest rate decision at 21:00 (GMT+2:00).

by JustMarkets, 2019.01.30

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.