Investors Assess the Fed Interest Rate Decision

The US dollar strengthened against a basket of major currencies after the Fed meeting. Yesterday, the regulator lowered its key interest rate by 25 basis points to 1.75%-2.00%, as experts forecasted. The regulator also updated macroeconomic forecasts. In particular, the forecast for US GDP growth for 2019 was improved to 2.2% instead of 2.1%, for 2021 – to 1.9% from 1.8%. The dollar index (#DX) closed the trading session with a slight increase (+0.32%).

The Bank of Japan has decided on a key interest rate during the Asian trading session. Thus, the regulator left the indicator unchanged at the level of -0.10%, as experts expected. At the same time, the management of the Bank of Japan noted a slowdown in the economies of other countries of the world, which reduced the likelihood for Japan to achieve the inflation target of 2%.

Yesterday, First Minister of Scotland, Nicola Sturgeon, said at a press conference in Berlin that in the case of Brexit, Scotland intended to remain part of the EU. The official expressed hope that Britain would not leave the bloc, however, if this happens, their country should have the opportunity to express its position and article of an independent EU country.

The "black gold" prices have been growing. Currently, futures for the WTI crude oil are testing the $58.45 mark per barrel.

Market Indicators

Yesterday, there was a variety of trends in the US stock markets: #SPY (-0.06%), #DIA (-0.15%), #QQQ (-0.04%).

The 10-year US government bonds yield rose slightly. At the moment, the indicator is at the level of 1.78-1.79%.

• - SNB interest rate decision at 10:30 (GMT+3:00);
• - Retail sales in the UK at 11:30 (GMT+3:00);
• - BoE interest rate decision at 14:00 (GMT+3:00);
• - Philadelphia Fed manufacturing index at 15:30 (GMT+3:00);
• - Existing home sales in the US at 17:00 (GMT+3:00).

by JustMarkets, 2019.09.19

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.