The US Dollar Is Stable. Investors Expect the FOMC Meeting Minutes. US-China Trade Conflict Is Still in the Focus of Attention

The US dollar is stable against a basket of major currencies. The dollar index (#DX) closed yesterday's trading session with a slight increase (+0.18%). Investors are focused on US-China trade relations. Earlier, the US backlisted some more Chinese technology firms, with which American business was not allowed to cooperate without special licenses. China, in turn, demanded from the United States to lift these restrictions. The United States added 28 companies to the list since these organizations were involved in discrimination against Uighurs, Kazakhs and other members of Muslim minority groups in China. The expansion of this list may adversely affect negotiations between the US and China.

At the same time, the US dollar is still under pressure after the speech by Fed Chairman Jerome Powell. According to him, the regulator is considering the possibility of purchases of treasury bills in order to increase the balance sheet to manage the reserves of the Fed. Powell also recognized the slowdown in employment growth and the risks to the US economy due to geopolitical events. Today, financial market participants will be focused on the publication of FOMC meeting minutes, which may indicate the further rate of the Fed’s monetary policy adjustment.

The British pound is declining against the US dollar due to the lack of progress on the Brexit issue. Yesterday, a meeting between the President of the European Parliament, David Sassoli, and British Prime Minister, Boris Johnson, was held. The EP President said that he had not heard any proposals that could promote Brexit.

The "black gold" prices have been growing. Futures for the WTI crude oil are currently testing the $52.85 mark per barrel. At 17:30, crude oil inventories will be published in the US.

Market Indicators

Yesterday, there was the bearish sentiment in the US stock markets: #SPY (-1.55%), #DIA (-1.19%), #QQQ (-1.50%).

The 10-year US government bonds yield is at the level of 1.54-1.55%.

• - JOLTS job openings in the US at 15:30 (GMT+3:00);
• - Publication of the FOMC meeting minutes at 21:00 (GMT+3:00).

by JustMarkets, 2019.10.09

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.