Demand for the US Currency Is Still High

Last week, the US dollar strengthened significantly relative to the currency majors. The dollar index (#DX) has updated the annual high. The Federal Reserve System, as expected, increased the range of key interest rate to 1.75%2.00%. The Central Bank representatives expect two interest rate increases this year. The ECB plans to complete the quantitative easing program in December 2018. The regulator left interest rates unchanged and said that it was not going to raise them until mid2019.

Today investors’ attention will be focused on the ECB President Mario Draghi speech. Also this week, the meetings of the Bank of England and the Swiss National Bank will take place, at which interest rate decisions will be made. The market can also be influenced by tension in the USChina trade relations after the leaders of the countries failed to reach mutually beneficial terms.

The “black gold” prices show a negative dynamics. At the moment, futures for the WTI crude oil are testing a mark of $63.80 per barrel.

Market Indicators

On Friday, the major US stock indices closed in the negative zone: #SPY (0.57%), #DIA (0.50%), #QQQ (0.35%).

At the moment, the 10year US government bonds yield is at the level of 2.912.92%.

Important economic statistics are not expected to be published today. We recommend paying attention to the speech of the ECB President Mario Draghi.

The financial markets of China will be closed due to the holiday.

by JustMarkets, 2018.06.18