The US dollar fell against a basket of major currencies after the speech by Fed Chairman, Jerome Powell. The official said that concerns about trade policy and the weakness of the economy continued to put pressure on the forecasts for the US economy, and the Fed was ready to do everything necessary to support economic growth. Powell believes that the rate of economic growth has become moderate, but weak inflation may last a little longer than it was supposed. The US dollar index (#DX) closed in the negative zone (-0.40%) yesterday.

Investors took the statements by the head of the US Central Bank as a signal that the Fed was ready for a more aggressive interest rate reduction. According to the CME FedWatch Tool, more than 50% of financial market participants believe that the regulator may reduce the range of key interest rate to 1.75%-2.00% at a meeting in September.

Among other things. Yesterday, ambiguous economic statistics were published in the UK. GDP (m/m) increased by 0.3%, as experts expected. Manufacturing production grew by only 1.4% in May instead of 2.2%. Also, the Bank of Canada decided on a key interest rate yesterday. As expected, the regulator left the indicator unchanged at 1.75%.

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The “black gold” prices are growing. At the moment, futures for the WTI crude oil are testing the mark of $60.75 per barrel.

Market Indicators

  • Yesterday, the bullish sentiment was observed in the US stock markets: #SPY (+0.48%), #DIA (+0.31%), #QQQ (+1.00%).
  • The 10-year US government bonds yield has become stable. Currently, the indicator is at the level of 2.04-2.05%.

The News Feed on 2019.07.11:

  • Publication of the ECB account of monetary policy meeting at 14:30 (GMT+3:00);
  • Data on inflation in the US at 15:30 (GMT+3:00).

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