Weekly Market Update

The Monetary Policy Committee Meeting of the Federal Reserve showed that many of the bank’s policy makers believe that raising interest rates would be justified “relatively soon” if the US economy continues to improve.

US stocks varied at the end of Wednesday’s trading session after the announcement of the Fed Meeting Minutes.
The Dow Jones Industrial Average rose 0.09% to 18144.20 points, winning 15.54 points. Standard & Poor’s index rose 0.11% to reach the level of 2139.17 points, with gains of 2.44 points. In contrast, the Nasdaq Composite Index fell 0.15% to reach the level of 5239.02 points, losing 7.77 points.

In the oil markets, US crude was down 1.12% ahead of data on US inventories from the American Petroleum Institute, to reach the level of $ 50.22, to lose about $ 0.57. Brent crude benchmark was down by about 1.13%, bringing the price per barrel for December delivery to $ 51.82, a loss of $ 0.59.

The British pound fell last Tuesday by 2 percent, recording 1.21 against US Dollar. The percentage of the losses incurred by the pound so far 19 per cent against the US dollar since the British voted for the exit from the European Union in a referendum last June, a decline not seen in Britain since 1985.

Today’s Economic figures:

Core Retail Sales: Forecast: 0.40

Description: The Retail Sales ex Autos released by the US Census Bureau is a monthly data that shows all goods sold by retailers based on a sampling of retail stores of different types and sizes except the automobile sector. The retail sales index is often taken as an indicator of consumer confidence. This report is the “advance” report, which can be revised fairly significantly after the final numbers are calculated. The positive economic growth anticipates bullish movements for the US Dollar.

Producer Price Index (YoY): Forecast: 0.200

Description: The Producer Price Index released by the Bureau of Labor statistics, Department of Labor measures the average changes in prices in primary markets of the US by producers of commodities in all states of processing. Changes in the PPI are widely followed as an indicator of commodity inflation. Generally speaking, a high reading is seen as positive (or bullish) for the US Dollar, whereas a low reading is seen as negative (or bearish).

Reuters/Michigan Consumer Sentiment Index
Sector: Confidence Indices
Description: The Reuters/Michigan Consumer Sentiment Index released by the Reuters/University of Michigan is a survey of personal consumer confidence in economic activity. It shows a picture of whether or not consumers are willing to spend money. Generally speaking, a high reading anticipates positive (or bullish) for the US Dollar, while a low reading is seen as negative (or bearish).

Fed’s Yellen Speech
Description: Janet L. Yellen took office as Chair of the Board of Governors of the Federal Reserve System on February 3, 2014, for a four-year term ending February 3, 2018. Dr. Yellen also serves as Chairman of the Federal Open Market Committee, the System’s principal monetary policy making body.

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