Meetings of the Central Banks Are in the Focus of Attention

Yesterday’s trading on currency majors was very active. The dollar index (#DX) closed in the positive zone (+0.29%). Demand for the American currency grew after Donald Trump’s meeting with Kim Jong Un. The meeting resulted in signing of three documents. The leaders of the countries expressed their commitment to denuclearization of North Korea. At the same time, experts note that there are no specifics in this agreement. Additional support for the US currency was provided by a positive inflation report in the US.

Today, the attention of the financial market participants is focused on the Fed interest rate decision. It is expected that the regulator will raise the key interest rate by 25 basis points to 2.00%. We recommend paying attention to the speech of the Central Bank representatives regarding the further monetary policy tightening. It should be recalled that tomorrow the ECB meeting will take place. Investors expect that the regulator may announce the details of the time limits of quantitative easing withdrawal.

Oil quotes show negative dynamics. At the moment, futures for the WTI crude oil are testing a mark of $65.90 per barrel. At 17:30 (GMT+3:00), a report on the US crude oil inventories will be published.

Market Indicators

Yesterday, there was a variety of trends on the major US stock indices: #SPY (+0.13%), #DIA (0.04%), #QQQ (+0.53%).

At the moment, the 10year US government bonds yield is at the level of 2.962.97%.

Consumer price index in the UK at 11:30 (GMT+3:00);Producer price index in the US at 15:30 (GMT+3:00);Fed interest rate decision at 21:00 (GMT+3:00).

by JustMarkets, 2018.06.13