Investors await Fed rate decision - 12.6.2024

The Dollar strengthening is intact currently . The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, ended 0.2% higher on Tuesday.

EUR/USD accelerated its sliding while GBP/USD accelerated its advancing yesterday despite the Office for National Statistics data showing UK unemployment rate ticked up in May. Euro is little changed against the dollar currently while Pound is lower. USD/JPY slowed its climbing on Tuesday while AUD/USD reversed its advancing with the yen lower against the Greenback currently and Australian dollar higher.

Futures on three main US stock indexes are up currently with the yield on benchmark 10-year US notes up at 4.408%. Stock indexes ended mixed on Tuesday as Nasdaq and SP 500 rallied to fresh records with three main stock benchmarks recording daily returns in a range from -0.3% to 0.88%. The Federal Reserve is widely expected to keep rates unchanged today.

European stock indexes are higher currently after closing lower on Tuesday with bank stocks leading losses. Asian indexes futures are mostly rising today with Hong Kong’s Hang Seng index defying the trend while data showed Chinese producer price index inflation shrank at its slowest pace in fifteen months in May whereas consumer price index inflation grew less than expected.

Brent is edging up currently. Prices ended higher again yesterday after the Energy Information Administration (EIA) raised its global oil demand growth forecast for the year to 1.10 million barrels per day from a previous estimate of 900,000 bpd. The EIA will release its US inventory data at 16:30 CET today. The US oil benchmark West Texas Intermediate (WTI) added 0.2% and is higher today. Brent rose 0.4% to $81.92 a barrel on Tuesday.