The US dollar strengthened against a basket of major currencies amid the publication of optimistic economic data from the US. Thus, existing home sales rose by 0.5% in July, while experts forecasted growth only by 0.2%. The FOMC minutes were also published yesterday. It should be recalled that according to the results of the last meeting, the Fed lowered its key interest rate by 25 basis points to 2.00%-2.25%. Based on the minutes, Fed officials abandoned any forecasting of future policies. The regulator will focus on future economic releases. At the moment, investors expect a symposium in Jackson Hole. The US Dollar Index (#DX) closed the trading session in the positive zone (+0.12%).
At the same time, US President, Donald Trump, continues to criticize the actions by Fed Chairman, Jerome Powell. The President considers Powell the biggest problem in the US economy. “Doing great with China and other Trade Deals. The only problem we have is Jay Powell and the Fed. He’s like a golfer who can’t putt, has no touch. Big U.S. growth if he does the right thing, BIG CUT – but don’t count on him! So far he has called it wrong, and only let us down,” said Donald Trump.
The “black gold” prices have moved away from local highs. At the moment, futures for the WTI crude oil are testing the $55.90 mark per barrel.
Market Indicators
- Yesterday, the bullish sentiment was observed in the US stock markets: #SPY (+0.81%), #DIA (+0.90%), #QQQ (+0.89%).
- The 10-year US government bonds yield has fallen again. At the moment, the indicator is at the level of 1.57-1.58%.
The news feed for 2019.08.22
- Data on economic activity in Germany and the Eurozone at 10:30 (GMT+3:00) and 11:00 (GMT+3:00), respectively;
- ECB monetary policy account at 14:30 (GMT+3:00);
- Initial jobless claims in the US at 15:30 (GMT+3:00).
