Today the Federal Reserve is beginning an important policy meeting where they are expected to discuss the latest economic reports from the United States, trade war worries, and amid those factors decide what to do with interest rates. It is expected that at this time the Fed will not increase the interest rate as analysts are more confident in a September hike. We would know the results from the meeting tomorrow. There are some important reports published today that would likely factor in the Fed’s considerations: the personal income and spending statistics. These are usually a good indicator of inflation.
The Bank of Japan also discussed its monetary policy. The Japanese economy is struggling with low growth and low inflation, so the BoJ made changes to its policy that would allow the Japanese markets to be more adaptable and flexible.
Today the dollar index has retreated to 94.15. Oil prices have also began lowering.
