The US dollar has been consolidating during yesterday’s and today’s trading sessions. The US dollar index closed yesterday with a slight decrease (-0.07%). At night, US President Donald Trump criticized the Fed again, having written on Twitter that the euro and other currencies were highly depreciated against the dollar because the Fed put the US at a disadvantage. “The Fed interest rate way too high, added to ridiculous quantitative tightening. They don’t have a clue!”
Traders expect that Fed is likely to reduce the interest rate in the near future due to slowing inflation and rising trade tensions. According to the CME Fed Watch Tool, more than 65% of financial market participants believe that the regulator can reduce the range of key interest rate by 25 basis points to 2.00%-2.25% at a meeting on July 31.
The trade conflict between the US and China is still in the focus of attention. On Tuesday, the Ministry of Foreign Affairs of the People’s Republic of China announced that China would take retaliatory measures if the United States continued to escalate trade tensions. It should be recalled that Donald Trump recently announced that new tariffs on Chinese goods were ready to come into force unless the parties did not make a deal at the G20 summit at the end of the month. US President has repeatedly said that he is going to meet with Chinese President Xi Jinping at a summit in Japan, but China does not yet give official statements about the meeting.
The “black gold” prices are falling. At the moment, futures for the WTI crude oil are testing the mark of $52.00 per barrel. At 21:00 (GMT+3:00) a report on crude oil inventories will be published in the US.
Market Indicators
- Yesterday, there was a variety of trends in the US stock market: #SPY (-0.02%), #DIA (-0.04%), #QQQ (+0.14%).
- The 10-year US government bonds yield has been declining. Currently, the indicator is at the level of 2.11-2.12%.
The news feed on 2019.06.12:
- Report on inflation in the US at 15:30 (GMT+3:00).
