The US dollar weakened against a basket of major currencies after the Fed meeting. The US Federal Reserve kept the key interest rate range at 2.25-2.50% and said it would be patient with its possible increase this year. Fed Chairman, Jerome Powell, also confirmed signals that the regulator would take into account future economic reports and would not rush into a further tightening of monetary policy. The US dollar index (#DX) closed in the negative zone (-0.51%).
Also yesterday, ambiguous statistics from the US were published. Thus, the ADP nonfarm employment change increased to 213K in January, while experts expected 180K. However, data for January were revised downward from 271K to 263K. The pending home sales index declined by 2.2% in December, while investors expected an increase of 0.8%.
The bullish sentiment is prevailing in the “black gold” market. At the moment, futures for the WTI crude oil are testing the mark of $54.50 per barrel. Positive data on economic activity in the manufacturing sector in China also support oil quotes.
Market Indicators
- Yesterday, the aggressive purchases were observed in the US stock market: #SPY (+1.58%), #DIA (+1.82%), #QQQ (+2.54%).
- The 10-year US government bonds yield fell significantly. Currently, the indicator is at the level of 2.67-2.68%.
Economic Data on 31.01.2019:
- Statistics on the German labor market at 10:55 (GMT+2:00);
- Eurozone GDP data at 12:00 (GMT+2:00);
- Report on Canada GDP at 15:30 (GMT+2:00);
- New home sales in the US at 17:00 (GMT+2:00).
