The US Dollar Is Declining. The Fed Meeting and US GDP Report Are in the Spotlight

Yesterday, the US dollar fell against a basket of major currencies. The US dollar index (#DX) closed in the negative zone (-0.16%). Investors have started to fix greenback positions before the Fed's meeting partially. It is expected that the regulator will leave interest rates unchanged. It should be recalled that in March, the US Central Bank cut the rate twice – the first time – to 1-1.25% per annum, the second time – to 0-0.25% per annum. Also, the publication of data on the US GDP is expected. Experts predict that in the first quarter, the US economy will slow down by 4%. Meanwhile, the number of cases on COVID-19 in the United States exceeded 1 million.

The Australian dollar continued to grow after the publication of optimistic economic data. Thus, Australia's consumer price index rose by 0.3%, while experts predicted an increase of 0.2%.

The "black gold" prices have moved up in anticipation of data on crude oil inventories in the United States. The WTI crude oil futures are currently testing the mark of $14.45 per barrel. At 17:30 (GMT+3:00), US crude oil inventories will be published.

Market indicators

Bearish sentiments were observed yesterday in the US stock market: #SPY (-0,46%), #DIA (-0,10%), #QQQ (-1,88%).

The 10-year US government bonds yield has declined again. At the moment, the indicator is at the level of 0.59-0.60%.

• - Data on US GDP at 15:30 (GMT+3:00);
• - Pending Home Sales in the US at 17:00 (GMT+3:00);
• - The decision on the interest rate by the US Fed at 21:00 (GMT+3:00).

by JustMarkets, 2020.04.29

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.