Trade Conflict Between the US and China Is in the Spotlight. Investors Assess the FOMC Meeting Minutes

The US dollar is consolidating against a basket of major currencies. The dollar index (#DX) closed yesterday’s trading session with a slight decrease (0.01%). Investors are still focused on negotiations between the US and China. It became known that countries can conclude an interim agreement. Also, the Executive Office of the US President, Donald Trump, plans to issue licenses that allow some US companies to cooperate with Huawei Technologies. It optimistically affected the sentiment of financial market participants. This step is regarded as the willingness of the United States to make concessions.

Financial market participants assess the FOMC meeting minutes. The Fed noted an increase in the recession probability amid uncertainty in trade policy and growing external risks. Fed Chairman, Jerome Powell, does not rule out another cut in interest rates this year. Weak economic data from the US was also published yesterday. So, JOLTS job openings decreased and counted to 7,051M instead of 7,191M. Today, we expect statistics on inflation in the US.

The “black gold” prices are falling due to pessimism about the global economy. Currently, WTI crude oil futures are testing the $52.55 mark per barrel.

Market Indicators

Yesterday, there was the bearish sentiment in the US stock markets: #SPY (0.95%), #DIA (0.71%), #QQQ (0.98%).

The 10year US government bonds yield has been growing. At the moment, the indicator is at the level of 1.581.59%.

• GDP data in the UK at 11:30 (GMT+3:00);
• The volume of industrial production in the UK at 11:30 (GMT+3:00);
• US inflation report at 15:30 (GMT+3:00).

by JustMarkets, 2019.10.10