Investors Have Taken a Wait-and-See Attitude Before the Fed Interest Rate Decision

June 10, 2020

by JustForex

The US dollar shows a variety of trends against a basket of currency majors. The US dollar index (#DX) closed in the negative zone (-0.30%) yesterday. Investors expect the Fed meeting. We recommend paying attention to the comments by the Central Bank. Earlier this month, the hope that the US economy could recover faster than expected led to the fact that the US government bonds yield reached three-month highs and thereby supported the dollar. Therefore, it is possible that the Fed, which is not expected to change interest rates, may decide to adjust the yield curve to reduce 10-year treasury bonds. This, in turn, may lead to a decrease in the US currency.

Meanwhile, optimistic data on the US economy were published yesterday. Thus, the JOLTS job openings increased by 5.046M in April, while experts forecasted growth by 5,000M. Today, investors will also assess data on inflation in the US.

The “black gold” prices are consolidating. Currently, futures for the WTI crude oil are testing the $37.85 mark per barrel. At 17:30, the US crude oil inventories will be published.

Market indicators

Yesterday, there was a variety of trends in the US stock market: #SPY (-0.75%), #DIA (-1.05%), #QQQ (+0.72%).

The 10-year US government bonds yield has been declining. At the moment, the indicator is at the level of 0.79-0.80%.


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The news feed on 2020.06.10:
  • – US inflation report at 15:30 (GMT+3:00);
  • – Fed interest rate decision at 21:00 (GMT+3:00).

by JustForex

InvestMacro

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