On Friday, the US dollar rose against a basket of major currencies and reached two-month highs. The US dollar index (#DX) closed in the green zone (+0.20%). Positive economic data from the US supported the American currency. Thus, US GDP (q/q) grew by 2.1% in the second quarter, while experts expected growth by 1.8%. This week, investors will be focused on the Fed’s monetary policy decision. Experts expect that the regulator will reduce the interest rate for the first time in more than a decade due to the slowdown of economic growth and inflation. The Fed meeting will take place on July 31. Investors will closely monitor the comments by representatives of the Central Bank.
Also, financial market participants will be focused on trade negotiations between the United States and China. US Trade Representative, Robert Lighthizer, and US Treasury Secretary, Steven Mnuchin, will travel to Shanghai for a new round of talks with Chinese representatives on Tuesday. China’s Vice Premier, Liu He, will lead the trade delegation for China’s part.
UK Foreign Secretary, Dominic Raab, said that the UK accelerated preparations for “hard” Brexit – without an agreement with Brussels. The official reported that the new Prime Minister, Boris Johnson, made the decision and the Cabinet supported him.
The “black gold” prices are consolidating. At the moment, futures for the WTI crude oil are testing the mark of $56.25 per barrel.
Market Indicators
- On Friday, the bullish sentiment was observed in the US stock markets: #SPY (+0.67%), #DIA (+0.17%), #QQQ (+1.03%).
- The 10-year US government bonds yield has moved away from local highs. Currently, the indicator is at the level of 2.06-2.07%.
The news feed for 2019.07.29:
- Today, the publication of important economic news is not expected.
