The Attention Is Focused on the Fed’s Meeting

During yesterday’s trading, the US dollar continued to strengthen against the major currencies. The dollar index (#DX) closed the trading session in the positive zone (+0.71%). At the moment, the US currency is testing local highs. Today, the key event will be the Fed’s decision on the interest rate. It is expected that the regulator will leave the interest rate at the previous level of 1.75%. At the same time, investors expect the Central Bank to take an aggressive stance. We recommend paying attention to the comments of the Fed’s representatives, which can point to further rates of tightening the monetary policy.

The Reserve Bank of Australia, as expected, kept the key interest rate at the previous level of 1.50%. The regulator plans to adhere to the current monetary policy. In April, the index of business activity in the US manufacturing sector slowed slightly to 57.3, which is below market expectations of 58.6. We recommend paying attention to the yield of the US government bonds.

The “black gold” prices are consolidating. At the moment, futures for the WTI oil are testing the $67.5 mark. Investors expect data on crude oil inventories in the US at 17:30 (GMT+2:00).

Market Indicators

Yesterday, the major US stock indices showed mixed dynamics: #SPY (+0.18%), #DIA (0.32%), #QQQ (+1.14%).

At the moment, the yield of 10year US government bonds is at the level of 2.992.99%.

At 21:00 (GMT+3:00), the Fed will announce its decision on the interest rate.

by JustMarkets, 2018.05.02