Investors Assess the Results of the Central Banks Meeting

The US dollar fell against a basket of currency majors after the Fed meeting. As investors expected, the regulator reduced the key interest rate range by 25 basis points to 1.50-1.75% per annum. The Central Bank is concerned about the uncertain economic situation in the country. The Fed signaled that further adjustment of monetary policy would depend on future economic releases. The dollar index (#DX) closed yesterday's trading session in the red zone (-0.22%).

The US currency was under pressure due to news that the holding of a summit in Chile, at which China and the US should sign the first stage of a trade agreement, was called into question. The APEC summit in Chile was to be held on November 16-17, however, the country's authorities intend to cancel the summit because of the need to restore law and order. Nevertheless, the United States expects to sign an agreement with China as scheduled. The summit is likely to be moved to another place.

Yesterday, the Bank of Canada also decided on the interest rate. As expected, the regulator left the interest rate unchanged at 1.75%. Today, during the Asian trading session, the Bank of Japan has also kept the key marks of monetary policy unchanged. Regulators worsened forecasts of GDP growth and inflation.

The "black gold" prices show a variety of trends. At the moment, futures for the WTI crude oil are testing the $55.00 mark per barrel.

Market Indicators

Yesterday, there was the bullish sentiment in the US stock markets: #SPY (+0.31%), #DIA (+0.32%), #QQQ (+0.48%).

The 10-year US government bonds yield has been declining. At the moment, the indicator is at the level of 1.74-1.75%.

• - Consumer price index in the Eurozone at 12:00 (GMT+2:00);
• - Eurozone GDP data at 12:00 (GMT+2:00)
• - Initial jobless claims in the US at 14:30 (GMT+2:00);
• - Personal spending in the US at 14:30 (GMT+2:00);
• - Canada GDP report at 14:30 (GMT+2:00).

by JustMarkets, 2019.10.31

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.