EUR/USD dropped 0.84%. Fed is likely raise the interest rates in June.

EUR/USD significantly fell today. As of 6:00 PM EDT the currency pair was trading at 1.1217, which is 0.84% lower than the previous close.

US shares finished mostly around the yesterday close. Below is presented the performance of major indices:

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  • DJIA closed at 17,526.62, down just 0.02%.
  • Nasdaq Composite rose 0.50% finishing at 4,739.12.
  • S&P 500 closed at 2,047.63, almost unchanged from the previous close.

USD FED

According to the Fed minutes from the April policy meeting released today, the Federal Reserve officials think that the US economy is ready for another interest rate hike in June.

“The cyclical sectors on the stock market are doing better, so there’s a bullish undertone to the idea that the Fed will finally start to normalize interest rates. I think it is high time that the Federal Reserve starts to normalize policy. We’ve tried this for seven years, let’s try something new. If the Fed shows confidence the private sector might do the same” said Jim Paulsen, chief investment strategist at Wells Capital Management in Minneapolis.

Oil prices closed lower finishing the rally which started on May 10. The WTI Crude closed at 48.19 USD/bbl down 0.25%. The Brent Crude was trading at 48.56 USD/bbl as of 5:31 PM EDT, which represents a 1.46% decline from the previous close.

According to the report from Energy Information Administration released today, the US Crude inventories rose by 1.3 million barrels last week reaching a figure of 541.3 million barrels. The analysts’ had expected the inventories to drop by 2.8 million barrels.

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I’m a finance specialist with 4+ years of working experience, out of which 2 years as a SME relationship manager at Byblos Bank and 2 years as a Finance Director in a Food & Beverage sector. My academic background include BA in economics, MA in finance, CFA Level 1 and F1, F2, F3 level of ACCA. I’m also experienced in Forex/CFD trading and Forex/ Equity markets analysis.

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