The FOMC Minutes Are in the Focus of Attention

Yesterday, the US dollar moved away from the highs against the basket of major currencies. Investors fix profits before the publication of the FOMC minutes. The US dollar index (#DX) closed in the positive zone (+0.05%) yesterday.

Also on Tuesday, the US President Donald Trump said that he was dissatisfied with the recent negotiations between the US and China. As a result, the US dollar was under pressure, and the Japanese yen strengthened against the US currency, as the demand for safe assets increases during periods of political instability. Trump also said that the summit with North Korean leader Kim Jong Un would not take place on June 12, as planned, due to the fact that Kim did not want to give up nuclear weapons.

Yesterday, the British pound strengthened after the member of the Monetary Policy Committee Gertjan Vlieghe announced that in the next three years the Bank of England would probably raise the interest rate 6 times. The Bank of England Governor Mark Carney repeated his previous comments that the slowdown in the British economy was due to temporary factors. He also said that the Bank of England planned to gradually raise the interest rate to a certain level.

The “black gold” prices moved away from local highs. At the moment, futures for the WTI crude oil are testing a mark of $72.00. At 17:30 (GMT+3:00), a report on the US crude oil inventories will be published.

Market Indicators

Yesterday, the bearish sentiment was observed in the US stock market: #SPY (0.28%), #DIA (0.70%), #QQQ (0.13%).

At the moment, the 10year US government bonds yield is at the level of 3.033.04%.

The index of business activity in the manufacturing sector in Germany at 10:30 (GMT+3:00);Consumer price index in the UK at 11:30 (GMT+3:00);New home sales in the US at 17:00 (GMT+3:00);Publication of the FOMC minutes at 21:00 (GMT+3:00).

by JustMarkets, 2018.05.23