The US dollar strengthened significantly against a basket of major currencies after the Fed meeting. Yesterday, the US regulator lowered the interest rate by 0.25 percentage points to 2.00-2.25% for the first time in 10 years. At the same time, Fed Chairman, Jerome Powell, announced at a press conference after the Fed meeting that he did not expect a long series of rate cuts. In addition, the regulator ended the program of “quantitative tightening” two months earlier than planned. The US dollar index (#DX) closed in the positive zone (+0.55%).
Optimistic economic data from the US supported the American currency. Thus, ADP nonfarm employment change increased by 156K in July, although investors forecasted growth by 150K.
Some reports on the economies of the Eurozone and Canada were also published yesterday. So, the unemployment rate in Germany counted to 1K in July, while experts expected 2K. The Eurozone consumer price index rose by 1.1% in July, which met the forecasts. Eurozone GDP (y/y) rose by 1.1% instead of 1.0%. Canada’s GDP (m/m) grew by 0.2% in May, while experts expected 0.1%.
The “black gold” prices have moved away from local highs. Currently, futures for the WTI crude oil are testing the $57.85 mark per barrel.
Market Indicators
- Yesterday, aggressive sales were observed in the US stock markets: #SPY (-1.09%), #DIA (-1.25%), #QQQ (-1.38%).
- The 10-year US government bonds yield is at the level of 2.02-2.03%.
The news feed for 2019.08.01:
- German manufacturing PMI at 10:55 (GMT+3:00);
- UK manufacturing PMI at 11:30 (GMT+3:00);
- Bank of England inflation report at 14:00 (GMT+3:00);
- Bank of England interest rate decision at 14:00 (GMT+3:00);
- ISM manufacturing PMI at 17:00 (GMT+3:00).
