Investors Are Evaluating the Statements by the Head of the Federal Reserve

The USD is weakened against the basket of major currencies after the US published weak economic stats, as well as the statements by the head of the Federal Reserve. For example, GDP increased in the third quarter by 3.5% instead of the expected 3.6%. The sales of the new real estate in October also lowered to 544K instead of the 583K. The USD index (#DX) closed in the red (0,62%).

Jerome Powell, the head of the Federal Reserve, unexpectedly stated that the key interest rates are “somewhat lower” than the neutral level. This means that the official has changed his position regarding the interest rate since back in October he stated that it had been far from the neutral level. According to him, the further course of the monetary policy is still undetermined and will depend on the macroeconomic indicators. You should keep an eye on the FOMC minutes once they are published.

Prices on oil are lowering while the US oil reserves are growing. The WTI futures are testing the 50.55 USD/barrel mark.

Market Indicators

Yesterday the US stock market was showing agressive purchases: #SPY (+2,30%), #DIA (+2,56%), #QQQ (+3,22%).

The 10year US government bonds yield is lowering. At the moment it is at 3.013.02%.

• Unemployment Change in Germany (EU)10:55 (GMT+2:00);
• Pending Home Sales (US)17:00 (GMT+2:00);
• FOMC Minutes Release (US)21:00 (GMT+2:00).

by JustMarkets, 2018.11.29