The US Currency Is Strengthening Against the Backdrop of Statements by Mr. Powell

The US dollar has been rising against the basket of major currencies after the speech by the Fed’s head, Jerome Powell. The official said that the US central bank would continue gradually increasing of the interest rate amid high economic growth and stable inflation. However, Powell also noted that trade disputes on the world market caused some concerns and it was still unknown how they would affect the US economy. The US dollar index (#DX) closed yesterday in the positive zone (+0.49%).

The British pound significantly weakened yesterday against the US currency. As yesterday’s economic reports showed, the average earning index in the UK, taking into account bonuses, counted to 2.5% in May, which met investors’ expectations. However, the number of jobless claims in June rose to 7.8K, while experts expected 2.3K. Today important economic statistics are expected from the UK, the Eurozone and the US.

The “black gold” prices are falling against the backdrop of growing crude oil stocks in the US from the American Petroleum Institute. At the moment, futures for WTI crude oil are testing the level of $66.75 per barrel. At 17:30 (GMT+3:00), a report on US crude oil inventories will be published.

Market Indicators

Yesterday the bullish sentiment prevailed in the US stock market: #SPY (+0.40%), #DIA (+0.24%), #QQQ (+0.61%).

At the moment, the yield of 10year US government bonds is at the level of 2.852.86%.

The consumer price index in the UK at 11:30 (GMT+3:00);The consumer price index in the Eurozone at 12:00 (GMT+3:00);Statistics on the real estate market in the US at 15:30 (GMT+3:00);The Fed’s “Beige Book” at 21:00 (GMT+3:00).

We also recommend paying attention to the speech by the Fed’s head, Mr. Powell.

by JustMarkets, 2018.07.18