The US dollar has moved away from local lows after the speech by Fed Chairman Powell. Yesterday, Fed members lowered investors’ expectations for a sharp reduction in rates by half a percentage point at the July meeting. Fed Chairman, Jerome Powell, said that officials were currently wondering whether the decrease in rates was necessary due to the uncertainty concerning US tariffs, Washington’s conflicts with other world countries, and low inflation. St. Louis Fed President, James Bullard, does not consider, in turn, the state of the US economy to be heavy enough to cut the interest rate by 50 basis points at the next meeting in July. According to CME FedWatch Tool, more than 75% of financial market participants believe that the regulator will reduce the range of key interest rates by 25 basis points to 2.00% -2.25% at a meeting in July. The US dollar index (#DX) closed in the positive zone (+0.17%).

Today, during the Asian trading session, the Reserve Bank of New Zealand has left the interest rate unchanged at 1.50%. Investors expect important economic releases from the US. We also recommend following the election of a new leader of the Conservative Party, who will become the head of the UK government as well.

The “black gold” prices show a strong uptrend. At the moment, futures for the WTI crude oil are testing the mark of $58.80 per barrel. At 17:30 (GMT+3:00) crude oil inventories will be published in the US.

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Market Indicators

  • Yesterday, aggressive sales were observed in the US stock market: #SPY (-0.98%), #DIA (-0.71%), #QQQ (-1.72%).
  • The 10-year US government bonds yield is at 2.02-2.03%.

The news feed on 2019.06.26:

  • Core durable goods orders in the US at 15:30 (GMT+3:00).

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