USD dollar has traded in different directions as the main Wednesday event is approaching - the decision of the Fed on the rate and subsequent comments. By all estimates, today the Federal Reserve will move to the second rate-hike this year.
At the beginning of US trading session, USD dollar traded higher, as the dollar index marked the session highs at 93.98 points, but closer to US session, pressure on the dollar resumed and intensified.
After today's meeting of the Fed tomorrow there will be ECB meeting. It is expected that the ECB will provide some verbal signals, with the aim of indicating the time frame for the narrowing of the quantitative easing program in the fourth quarter with an eye to stopping at the end of the year. Nevertheless, Draghi will most likely focus on the importance of other elements of monetary policy and the fact that they will continue after the purchases are finished.
The oil market remains under pressure despite optimistic forecasts of OPEC's monthly report released yesterday. So according to the data given this year, the potential for growth in demand for oil from China, India and the USA remains. Also, data were provided that, as a result of May, the percentage of the agreement implementation was 162%.
Investors drew attention to the fact that a high percentage of the agreement was achieved primarily due to a decrease in production in Venezuela. The South American country fulfilled the terms of the agreement by 711%, and countries such as Iraq and Saudi Arabia, on the contrary, continue to increase production levels, which increases the concern , that at the OPEC meeting on June 22, production quotas can be increased.
However despite these general market expectation, the Brent oil market was able to hold above $ 75 per barrel and gained into the $ 76.46 zone.