The US dollar is falling against a basket of major currencies. Yesterday, the dollar index (#DX) moved away from local highs and closed in the negative zone (-0.26%). Investors took a wait-and-see attitude before the Fed’s decision on the interest rate. The Fed meeting will start today and last two days. The regulator is expected to raise the base interest rate by 0.25 percentage points to 2.25-2.50% per annum. Investors will carefully assess the comments by representatives of the regulator regarding the further monetary policy tightening.
The euro strengthened against the US currency despite weak economic data. The consumer price index in the Eurozone counted to 1.9% (year on year) in November and was worse than the expected value of 2.0%. The euro was supported by news that Italy reached an agreement with the EU on a new budget project for 2019. Italian Prime Minister, Giuseppe Conte, reported that the government would reduce the budget deficit target for 2019 to 2.04% of GDP instead of 2.4% of GDP.
The “black gold” prices are falling. At the moment, futures for the WTI crude oil are testing the mark of $49.25 per barrel.
Market Indicators
- Yesterday, aggressive sales were observed in the US stock market: #SPY (-1.96%), #DIA (-2.07%), #QQQ (-2.27%).
- The 10-year US government bonds yield is at the level of 2.83-2.84%.
The news feed on 18.12.2018:
- German IFO business climate index at 11:00 (GMT+2:00);
- Statistics on the real estate market in the US at 15:30 (GMT+2:00).
