Currency Majors Are Consolidating. Investors Estimate the FOMC Minutes

Yesterday, the US dollar continued to strengthen against the major currencies. The US dollar index (#DX) closed in the positive zone (+0.43%). The FOMC minutes confirmed investor expectations that the Fed will raise rates in June. At the same time, the regulator is concerned about the inflation rate in the country. Some representatives of the Central Bank believe that it is too soon to draw conclusions that inflation will keep the target level of 2%. The Federal Reserve plans to conduct a gradual normalization of monetary policy. At the moment, currency majors are consolidating.

The euro and the British pound fell to fivemonth lows amid weak economic statistics. In May, the index of business activity in the manufacturing sector in Germany fell to 56.8, while investors expected a value of 57.9. In April, the consumer price index in the UK fell to 2.4% (yearonyear) instead of the forecasted value of 2.5%. Financial market participants are waiting for the account of the ECB last meeting.

The “black gold” prices are falling against the increase in oil inventories in the US. At the moment, futures for the WTI crude oil are testing a mark of $71.60.

Market Indicators

Yesterday, the bullish sentiment was observed in the US stock market: #SPY (+0.28%), #DIA (+0.18%), #QQQ (+0.84%).

At the moment, the 10year US government bonds yield demonstrates negative dynamics. The indicator is at the level of 2.972.98%.

Report on retail sales in the UK at 11:30 (GMT+3:00);Publication of the ECB account on monetary policy at 14:30 (GMT+3:00);Existing home sales in the US at 17:00 (GMT+3:00).

We also recommend paying attention to the speech of the Bank of England Governor Mark Carney.

by JustMarkets, 2018.05.24