Demand for the US Dollar Has Increased after the Fed Comments. Investors Expect the Bank of England Interest Rate Decision

The US dollar recovered some of its losses against a basket of major currencies. Yesterday, the Fed, as expected, kept the range of the key interest rate at the same level of 2.25-2.50%. The Central Bank noted the steady growth of the economy, the stability of the labor market and optimistic expectations regarding the acceleration of inflation. The dollar index (#DX) closed in the positive zone (+0.22%).

In addition, important economic data from the UK and the US were published yesterday. Thus, the UK manufacturing PMI counted to 53.1 in April, while experts expected 53.2. ADP nonfarm employment change increased to 275K in April, although investors forecasted 181K. However, ISM manufacturing PMI dropped to 52.8 in April instead of 55.0. Today, financial market participants took a wait-and-see attitude before the Bank of England interest rate decision. It is expected that the regulator will leave the rate at the same level of 0.75%.

The "black gold" prices are consolidating. At the moment, futures for the WTI crude oil are testing the mark of $63.35 per barrel.

Market Indicators

Yesterday, there was the bearish sentiment in the US stock market: #SPY (-0.75%), #DIA (-0.62%), #QQQ (-0.32%).

The 10-year US government bonds yield is recovering. Currently, the indicator is at the level of 2.52-2.53%.

- German manufacturing PMI at 10:55 (GMT+3:00);
- UK construction PMI at 11:30 (GMT+3:00);
- Bank of England interest rate decision at 14:00 (GMT+3:00);
- Initial jobless claims in the US at 15:30 (GMT+3:00).

by JustMarkets, 2019.05.02

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.