The Fed Meeting is the Focus of Attention

Yesterday, there was high trading activity on the currency majors. The dollar index (#DX) closed the trading session with a slight decrease (0.12%). The US dollar also came under pressure after the President Donald Trump’s State of the Union speech. Financial markets participants did not see specifics in the speech of the president. At the same time, the fall in the US currency was restrained due to the positive statistics and the growth in the US government bonds yield. In January, the consumer confidence index increased by 1.9% to 125.4. Today, the Fed meeting will be the key event, which will determine the further sentiment in the currency markets. It is expected that the regulator will keep the key interest rate unchanged at the level of 1.50%.

The euro rose after the release of data on the economy of the Eurozone. The Eurostat data, published on Tuesday, confirmed that the economic recovery in Eurozone continued. Preliminary data indicated that the GDP growth in Eurozone was 2.7% (year on year). Market expectations were at the level of 2.8%.

At the moment, bearish sentiment is prevailing in the market of “black gold”. Futures for the WTI crude oil are testing the mark of $64.15 per barrel. At 17:30 (GMT+2) a report on the crude oil inventories in the United States will be published.

Market Indicators

Yesterday, sales were prevailed in the US stock market: #SPY (1.03%), #DIA (1.34%), #QQQ (0.82%).

The 10year US government bonds yield moved away slightly from local highs. At the moment, the indicator is at the level of 2.70%.

Statistics on the labor market in Germany at 10:55 (GMT+2:00);Report on inflation in the Eurozone at 12:00 (GMT+2:00);ADP nonfarm employment change in the US at 15:15 (GMT+2:00);GDP data in Canada at 15:30 (GMT+2:00);Pending home sales index in the US at 17:00 (GMT+2:00).

by JustMarkets, 2018.01.31