The US Currency Has Moved Away from Local Highs. Investors Expect the FOMC Minutes

August 21, 2019

by JustForex

The US dollar has moved away from local highs and fallen against a basket of major currencies. Investors have taken a wait-and-see attitude before the publication of the FOMC minutes, which may indicate the further rate of adjustment of the Fed’s monetary policy. On August 22-24, a banking symposium will be held in Jackson Hole, where the Fed’s Chairman Jerome Powell will speak. Financial market participants expect the official to give signals to further interest rate cut. As previously reported, US President Donald Trump criticized the actions of the Central Bank and insisted on the regulator to reduce the interest rate by 100 basis points. The US dollar index (#DX) closed the trading session in the negative zone (-0.16%).

Investors are also focused on the meeting of the G7 countries – France, Germany, Great Britain, Italy, Canada, the USA, and Japan. The meeting will be held on August 24-26 in Biarritz (France).

The “black gold” prices show positive dynamics. Futures for the WTI crude oil are currently testing the $56.20 mark per barrel. At 17:30 (GMT+3:00), a report on the US crude oil inventories will be published.

Market Indicators

Yesterday, the bearish sentiment was observed in the US stock markets: #SPY (-0.77%), #DIA (-0.63%), #QQQ (-0.77%).

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The 10-year US government bonds yield has moved away from local lows. At the moment, the indicator is at the level of 1.60-1.61%.

The news feed for 2019.08.21:

– Core consumer price index in Canada at 15:30 (GMT+3:00);
– Existing home sales in the US at 15:30 (GMT+3:00);
– Publication of the FOMC minutes at 21:00 (GMT+3:00).

by JustForex