Speech by the Fed Chairman Is in the Spotlight

The US dollar has been declining against a basket of currency majors. The US dollar index (#DX) closed in the negative zone (-0.34%). Investors’ sentiment has been improved slightly after the Fed announced the start of a massive purchase of US corporate bonds. The regulator wants to provide companies with access to cash, as well as increase the liquidity of the credit market in the context of the ongoing influence of the coronavirus on the economy.

Investors still concern about the second wave of COVID-19. China has reported dozens of new cases of coronavirus, which were primarily found in Beijing's large food market. Also, a new COVID-19 outbreak was recorded in Tokyo, after the nightclubs and bars of the capital opened. The total number of cases has already exceeded 8 million. Today, the speech by the Fed Chairman is in the spotlight. Jerome Powell should give a speech to Congress and present to the legislators the Fed's vision regarding economic prospects.

The "black gold" prices have been growing. Currently, futures for the WTI crude oil are testing the $37.50 mark per barrel. At 23:30 (GMT+3:00), API weekly crude oil stock will be published.

Market indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+0.93%), #DIA (+0.63%), #QQQ (+1.22%).

The 10-year US government bonds yield continues to grow. At the moment, the indicator is at the level of 0.73-0.74%.

• - UK labor market data at 09:00 (GMT+3:00);
• - ZEW economic sentiment indices in Germany and the Eurozone at 12:00 (GMT+3:00);
• - US retail sales report at 15:30 (GMT+3:00).

by JustMarkets, 2020.06.16

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.