This is what you need to know to operate today Wednesday, June 18:
After Tuesday’s volatile action, financial markets remain relatively quiet in the early hours of Wednesday while investors expect the Federal Reserve policy (Fed). Together with the policy declaration, the US Central Bank will also publish the review summary of Economic Projections (SEP). Before this event, the US economic calendar will present the weekly data of initial applications for unemployment subsidy and housing construction beginnings for May.
He US Dollar (USD) It benefited from flows to shelter, since the comments of the president of the US, Donald Trump, suggested that the US could be directly involved in the conflict between Israel and Iran. “Now we have total and complete control of the heavens about Iran,” Trump said and added that Ayatolá Ali Khamenei is “an easy goal.” The USD index rose 0.7% on Tuesday and the main Wall Street indices lost between 0.7% and 1% in the day. In Wednesday, the USD index remains in negative territory around 98.50 and the futures of the US stock market rates quote slightly upwards.
US dollar price this week
The lower table shows the percentage of the US dollar change (USD) compared to the main currencies this week. US dollar was the strongest currency against pound sterling.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.22% | 0.76% | 0.29% | 0.54% | -0.25% | -0.19% | 0.61% | |
| EUR | -0.22% | 0.42% | 0.08% | 0.33% | -0.35% | -0.40% | 0.39% | |
| GBP | -0.76% | -0.42% | -0.33% | -0.09% | -0.76% | -0.81% | -0.02% | |
| JPY | -0.29% | -0.08% | 0.33% | 0.24% | -0.84% | -0.82% | -0.10% | |
| CAD | -0.54% | -0.33% | 0.09% | -0.24% | -0.72% | -0.73% | 0.07% | |
| Aud | 0.25% | 0.35% | 0.76% | 0.84% | 0.72% | -0.05% | 0.74% | |
| NZD | 0.19% | 0.40% | 0.81% | 0.82% | 0.73% | 0.05% | 0.80% | |
| CHF | -0.61% | -0.39% | 0.02% | 0.10% | -0.07% | -0.74% | -0.80% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
It is widely expected that the Fed maintains the policy rate without changes in the range of 4.25%-4.5%. The projections of interest, inflation and growth rates in the SEP could trigger a market reaction. Later in the session, the president of the FED, Jerome Powell, will deliver the policy declaration and answer the press questions.
The National Statistics Office (ONS) of the United Kingdom reported early Thursday that annual inflation in the United Kingdom, measured by the variation of the Consumer Price Index (CPI), dropped to 3.4% in May from 3.5% in April, as expected. In monthly terms, the CPI rose 0.2% after the 1.2% increase recorded in the previous month. GBP/USD He did not show an immediate reaction to these figures and was quoting slightly upwards in the day, slightly above 1,3450. The Bank of England will publish its decision on interest rates on Thursday.
EUR/USDI stage a rebound and remain stable above 1,1500 after losing more than 0.5% on Tuesday. Later in the session, several policy managers of the European Central Bank (ECB) will give speeches.
GoldHe closed the day without changes on Tuesday after not getting over $ 3,400. In Wednesday, the Xau/USD moves laterally slightly above $ 3,380.
OilThe prices shot in the second half of the day on Tuesday, with the barrel of West Texas Intermediate (WTI) registering its greatest closure since January above $ 73.50. The WTI corrected downward on Wednesday and trades below $ 73.
Japan’s data showed in the first Asian session that machinery orders fell 9.1% in monthly terms in April. After closing the previous three days of negotiation in positive territory, USD/JPYIt moves down and quotes around 145.00 in the European session on Wednesday.
FAQS Point Graph
The “Point Graph” is the popular name of interest rates of the Federal Open Market Committee (FOMC) of the US Federal Reserve (Fed), which executes the monetary policy. They are published in the Summary of Economic Projections, a report in which the members of the FOMC also announce their individual projections on economic growth, unemployment rate and inflation for the current year and the following. The document consists of a graphic in which the forecasts of types of interest are represented, with a point that represents the forecast of each member of the FOMC. The Federal Reserve also adds a table in which the forecast and median range of each indicator is summarized. This makes it easier for market participants to see how the political leaders expect to behave the US economy in the short, medium and long term.
The US Federal Reserve publishes the “Point Graph” once every two meetings, or in four of the eight annual scheduled meetings. The “Economic Projection Summary” report is published together with the monetary policy decision.
The “Point Graph” offers a complete vision of the expectations of the political leaders of the Federal Reserve (FED). Since it reflects the forecasts of each official on interest rates at the end of each year, it is considered a key indicator for the future. Observing the “Point Graph” and comparing the data with the current levels of interest rates, market participants can see where the political leaders expect the types and the general direction of monetary policy. Since the projections are published quarterly, the “points graph” is widely used as a guide to calculate the terminal type and the possible moment of a monetary policy.
The data that moves the market most in the “points graph” is the projection of the type of federal funds. Any change with respect to the above projections can influence the valuation of the US dollar (USD). In general, if the “points graph” shows that political leaders expect higher interest rates in the short term, this tends to be up to the USD. Similarly, if the projections point to lower types in the future, the USD is likely to weaken.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
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