Investors Expect the Fed Chairman’s Speech

The US dollar continues to hold positions against a basket of major currencies. Yesterday, the US dollar index (#DX) closed trading session with a slight increase (+0.10%). After the publication of positive data on the US labor market last week, investors expect the Fed to be less aggressive concerning further interest rate lowering. Today, the speech by the Fed Chairman J. Powell on monetary policy in the House Committee on Financial Services is in the focus of attention. According to the monetary policy report, the regulator is open to lowering the base interest rate to stimulate economic growth. According to CME FedWatch Tool, more than 95% of financial market participants believe that the Central Bank will reduce the range of key interest rate by 25 basis points to 2.00%2.25% at a meeting in July.

UK Brexit Minister Stephen Barclay said that in order to avoid the “hard” Brexit, the withdrawal agreement should be renegotiated. The official believes that Brexit will be disruptive, first of all, not for the UK, but for the whole European Union, especially for Ireland.

The “black gold” prices are moving in different directions. At the moment, futures for the WTI crude oil are testing $57.80 per barrel. At 23:30 (GMT+3:00) API weekly crude oil stock will be published.

Market Indicators

Yesterday, there was the bearish sentiment in the US stock markets: #SPY (0.55%), #DIA (0.45%), #QQQ (0.70%).

The 10year US government bonds yield has been recovering. Currently, the indicator is at the level of 2.042.05%.

JOLTS job openings at 17:00 (GMT+3:00).

by JustMarkets, 2019.07.09