Published On: Wed, Feb 28th, 2018

US Dollar Strengthens After Powell’s Speech

Yesterday, the new Fed chairman, Jerome , made a in the Congress. According to Powell, the US economy is growing at a steady pace, inflation is increasing, and there is no risk of recession, the market remains “bullish”. It is expected that this year interest rates will triple and that the will be in March. Powell also noted that, when taking monetary policy decisions, the Fed would maintain a balance between preventing that the market overheats and achieving inflation rate of 2%.

Following these remarks, the strengthened against the major currencies. Yesterday, the index closed in the positive zone (+0.55%). Despite the growth of the index, the greenback fall against the , the Bank of Japan announced that it intends to reduce Japanese government bonds purchases—a statement that boosted the yen.

The “black gold” prices are getting lower. Futures for the are testing a mark of $62.75 per barrel. Investors are still concerned about the increase in oil production in the US. Weak statistics on in the Chinese manufacturing sector put additional pressure.

Market Indicators

Yesterday, there were aggressive sales in the US stock market: # (-1.25%), #(-1.15%), # (-1.24%).

At the moment, the yield is at the level of 2.90-2.91%.

The news feed on 2018.02.28:

– Report on the German at 10:55 (GMT+2:00);
– in the Eurozone at 12:00 (GMT+2:00);
– data in the US at 15:30 (GMT+2:00);
– Pending index in the US at 17:00 (GMT+2:00).

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