The US Dollar Rose Despite the Fed’s Position

During yesterday’s trading session, the US dollar continued to recoup despite mixed statements of the Federal Reserve System representatives on the prospects for monetary policy. As the FOMC member Kashkari said, the Fed intends to keep interest rates at the previous low level to support the growth of inflation and wages. The US dollar index (#DX) fell by 0.04% to 92.19.

However, the yen has begun to strengthen against the US currency after it became known that the Bank of Japan had reduced the volume of the purchasing program of the longterm government bonds. Investors expect that the Central Bank of Japan will tighten the adaptive monetary policy this year.

The “black gold” prices have risen again due to the expected reduction in the raw materials stocks in the US. According to the API, oil inventories in the US decreased by 11.2 million barrels to 416.6 million in a week against a forecasted decline in 3.9 million barrels. At the moment, futures for the WTI crude oil are being traded near $63.45 per barrel.

Market Indicators

Major US stock indices closed the trading session in the positive zone: #SPY (+0.23%), #DIA (+0.49%), #QQQ (+0.01%).

The 10year US government bonds yield continues to show positive dynamics. At the moment, the indicator is at the level of 2.54%.

The volume of industrial production in the UK at 11:30 (GMT+2:00);The trade balance in the UK at 11:30 (GMT+2:00);German 10year bund auction at 12:40 (GMT+2:00);Estimation of the UK GDP growth at 15:00 (GMT+2:00);Import/export price index in the US at 15:30 (GMT+2:00);Building permits in Canada at 15:30 (GMT+2:00);Crude oil inventories in the US at 17:30 (GMT+2:00);10year yield on the treasury note of the US at 20:00 (GMT+2:00).

by JustMarkets, 2018.01.10