Investors Have Taken a Wait-and-See Attitude Before the Fed Meeting

The US dollar is consolidating against a basket of major currencies. The dollar index (#DX) closed yesterday in the red zone (0.23%). Investors have taken a waitandsee attitude before the Fed meeting, which will begin today and end tomorrow. Experts expect the regulator to keep interest rates at 1.75% per annum following the meeting. In addition, investors expect the speech by the Fed Chairman Jerome Powell to receive at least some signals and hear hints of what the Fed’s future policy will be.

Investors are focused on the upcoming UK parliamentary elections, which will be held tomorrow on December 12. It should be recalled that Boris Johnson, who is the leader of the British conservatives, hopes that the new parliament will support his Brexit deal. Optimistic economic data from the UK supported the British pound. So, GDP (q/q) did not change in the third quarter, although experts expected a decrease by 0.2%. GDP (YoY) grew by 0.7% in the third quarter, which met the expectations of experts. Manufacturing production grew by 0.2% in October instead of 0.1%.

The “black gold” prices are declining. At the moment, futures for the WTI crude oil are testing the $59.00 mark per barrel. At 17:30 (GMT+2:00), US crude oil inventories will be published.

Market Indicators

Yesterday, there was the bearish sentiment in the US stock market: #SPY (0.11%), #DIA (0.11%), #QQQ (0.08%).

The 10year US government bonds yield is consolidating. At the moment, the indicator is at the level of 1.821.83%.

• Core consumer price index in the US at 15:30 (GMT+2:00);
• Fed interest rate decision at 21:00 (GMT+2:00).

by JustMarkets, 2019.12.11