The US Currency Strengthened After the Fed Meeting

Yesterday, the Fed meeting was held. The central bank, as expected, kept the range of the key interest rate at the previous level of 1.25%1.50%. The regulator noted the positive changes in the US economy and raised expectations relative the inflation growth. As a result, the US currency strengthened against the majors. Financial markets participants estimate the probability of an increase in the key interest rate in March by more than 80%. The US dollar index (#DX) closed the trading session in the positive zone (+0.38%).

Yesterday, a number of reports on the economy of the Eurozone and Germany was also published. Retail sales in Germany fell, but good data on the labor market compensated it. The number of jobless claims fell by 25 thousand. The unemployment rate fell by 0.1% to 5.4%. Consumer prices in the Eurozone increased by 1.3% (year on year). The ECB officials are optimistic about the Eurozone economy improvement, which may help the euro to show one of the best results.

At the moment, bullish sentiment is prevailing in the “black gold” market. Futures for the WTI crude oil are testing a mark of $ 64.75 per barrel.

Market Indicators

Yesterday, purchases were prevailed in the US stock market: #SPY (+0.05%), #DIA (+0.31%), #QQQ (+0.41%).

The 10year US government bonds yield shows a positive dynamics. At the moment, the indicator is at the level of 2.74%.

Data on business activity in the manufacturing sector of Germany and the UK at 10:55 (GMT+2:00) and 11:30 (GMT+2:00), respectively;ISM manufacturing PMI in the US at 17:00 (GMT+2:00).

by JustMarkets, 2018.02.01