mask Dollar Steadies before Fed Rate Cut Decisions

19/ 06/ 2019

Dollar Steadies before Fed Rate Cut Decisions

Daily Update -19th June 2019

Yesterday’s Market

  • EUR ZEW Economic Sentiment, ECB Mario Draghi’s Speech

Yesterday’s Explained


Common Currency Euro dropped along with a decline in German government bond yields, which hit a new record low on Tuesday, after ECB Chief Mario Draghi said the bank will need to ease policy again if inflation doesn’t head back to its target. A closely watched survey by the ZEW Institute showing that the mood among German investors had deteriorated sharply in June also weighed on the euro.

 

Today’s Market

  • GBP Consumer Price Index
  • US FOMC Economic Projection, Fed Monetary Policy Statement, Interest Rate Decision

Today’s Focus

To kick off the busy week UK will release their Consumer Price Index which is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The purchase power of GBP is dragged down by inflation.

The CPI is a key indicator to measure inflation and changes in purchasing trends. Focus of this week will be around US FOMC Economic Projection & Monetary Policy Statement & their Interest Rate Decisions. Since US Dollar is the Key driver of the Foreign Markets a Rate Cut on the Dollar will increase volatility of Markets.