Investors Are Awaiting Meetings of Central Banks

The US dollar continues to strengthen against most currencies. The US dollar index (#DX) closed in the positive zone (+0.18%). Participants in financial markets are awaiting meetings of Central Banks to be held in the next two weeks. On Thursday, a meeting of the European Central Bank is expected. After that, the Bank of Japan will decide on monetary policy, and next week the Fed's meeting will take place.

Yesterday, members of the Conservative Party of Great Britain voted for the new party leader, who will take the post of Prime Minister. The name of the new 77th Prime Minister of Great Britain will be known today at 15:00 (GMT+3:00). Two candidates fought for the post: former Foreign Secretary, Boris Johnson, and the current head of the same department, Jeremy Hunt. The most likely winner is Johnson.

The single currency fell against the US currency due to investors' confidence that at the next meeting of the ECB, the head of Mario Draghi will point to a decrease in the interest rate in September. The likely rate reduction is connected with the tension in international trade relations.

In addition, participants of financial markets continue to monitor the development of trade relations between the United States and China. It became known that the US delegation, led by US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin, will go to Beijing next week to resume talks with China.

The "black gold" prices show a positive trend amid tensions in the Middle East. At the moment, futures for the WTI crude oil are testing the mark of $56.35 per barrel. At 23:30 (GMT+3:00) the API Weekly Crude Oil Stock report will be published.

Market Indicators

Yesterday, the bullish sentiment was observed in the US stock markets: #SPY (+0.25%), #DIA (+0.07%), #QQQ (+0.80%).

The yield on 10-year US government bonds is at 2.04-2.05%.

- Existing home sales in the USA at 17:00 (GMT+3:00).

by JustMarkets, 2019.07.23

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.