Brexit Is Extended. Investors Expect the Fed Meeting

The US dollar is being traded without clear dynamics against a basket of currency majors. The dollar index (#DX) closed yesterday's trading session in the red zone (-0.09%). Investors still follow the US-China trade agreement. The tension between two countries eased after the Office of the US Trade Representative said the US was considering extending some tariff exclusions on $34 billion of imports from China. Also, financial market participants took a wait-and-see attitude before the Fed meeting.

The British pound has been growing after it became known that British Prime Minister Boris Johnson officially agreed to delay Brexit until January 31, 2020. Surely, Johnson did not want to allow the delay and still believe that it will harm the UK. Therefore, the head of the European Council, Donald Tusk, states the issue is a "flextension". That is, the country will be able to exit the EU before the deadline if Johnson manages to convince the parliament. EU leaders also approved the Brexit extension from October 31, 2019, to January 31, 2020.

The "black gold" prices are declining. Currently, futures for the WTI crude oil are testing the $55.20 mark per barrel. At 22:30 (GMT+2:00), API weekly crude stock will be published.

Market Indicators

Yesterday, there was the bullish sentiment in the US stock markets: #SPY (+0.56%), #DIA (+0.45%), #QQQ (+0.99%).

The 10-year US government bonds yield has moved away from local highs. At the moment, the indicator is at the level of 1.82-1.83%.

• - CB consumer confidence index in the US at 16:00 (GMT+2:00);
• - Pending home sales index in the US at 16:00 (GMT+2:00).

by JustMarkets, 2019.10.29

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.