The FOMC Protocols Hit the Dollar

During yesterday’s trading, the US dollar sharply weakened against the basket of world currencies. The dollar index (#DX) closed the trading session in the negative zone (0.78%). The FOMC protocols indicated that most officials expect stable economic growth. The increase in the range of the Fed’s key interest rate may be justified in the near future. Nevertheless, some Fed’s representatives are concerned about the low level of inflation. The regulator plans to evaluate the new economic data before determining the further rate of tightening the monetary policy.

Additional pressure on the American currency was provided by ambiguous economic reports and negative dynamics of the US government bonds yield. In October, the volume of orders for durable goods fell by 1.2%. Experts expected the growth of the index by 0.3%. At the same time, indices of expectations and consumer sentiment from the University of Michigan showed steady growth. Today, the US financial markets are closed due to the holiday. The attention will be focused on statistics from the UK, the Eurozone and Canada.

The “black gold” prices are consolidating after a significant rally from the beginning of this week. At the moment, futures for the WTI crude oil are being traded in the range of $57.75$58.00 per barrel.

Market Indicators

Major US stock indices showed a variety of trends: #SPY (0.09%), #DIA (0.24%), #QQQ (+0.12%).

At the moment, the 10year US government bonds yield is at the level of 2.322.33%.

A number of indices of business activity in Germany and the Eurozone at 10:30 (GMT+2:00) and at 11:00 (GMT+2:00), respectively;Preliminary data on the UK GDP at 11:30 (GMT+2:00);A report on retail sales in Canada at 15:30 (GMT+2:00);New Zealand’s trade balance at 23:45 (GMT+2:00).

by JustMarkets, 2017.11.23