The main market drivers: investors are waiting for the Fed meeting minutes

From the start of the day the dynamics of the market and major currency pairs remain restrained and are limited to the day opening level. The reason for the limited market remains the expectations of the US Federal Reserve meeting results, which will be released today in the American session. More details on expectations for the upcoming Fed meeting can be found here. An additional factor limiting the market remains uncertainty that arose after the mid-term elections in the United States with the Democrats gaining a majority in the House of Representatives, thus depriving Republicans of the advantages.

The negative start of the stock indices of America supports the US dollar as an asset of a safe haven, but also indicates market restraint and unwillingness of investors to take risks and limits general dynamics of the market.

The US dollar index, as well as the market, remains limited to the side range from 96.30-40 to 96.10-00, which actually slowed down the downtrend, which was traced from the start of the month and indicates the possibility of a downward trend reversal.

The US dollar index chart. The current price is 96.10 (10-year government bonds yield is the blue line)

Read also: “Correlation Strategy for Trading in the Forex Market”

Andre Green

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