USD weakened on Friday against the basket of other currencies. Ambiguous economic reports were published in the US. The number of employees in the Non-Farm Sector shortened to 155K while the experts were expecting 200K. The reports from October were also re-reviewed and closed at 237K instead of 250K. The unemployment level remained at 3.7%. Also on Friday, the head of Federal Reserve Jerome Powell announced that the key interest rate is close to the neutral level. Investors are expecting the US to slow the growth of the key interest rate down. The USD index (#DX) closed in the red (-0.30%).
Canada published positive Labour Market reports on Friday. The number of employed citizens grew by 94K instead of 10.3K while the unemployment level shrank to 5.6% instead of 5.8%. Today during the Asian trading session Japan published rather weak GDP reports. The financial market participants expect important reports from the UK and the US.
The main event this week will be the British Parliament voting on the Brexit plan presented by Theresa May. The voting is scheduled to commence tomorrow, on December, 11. If the plan does not receive their support, all bets are off – anything can happen, including a second Brexit referendum. Keep an eye on the relevant data regarding this situation.
The prices on oil stabilized. The WTI futures are testing the 52.50 USD/barrel.
Market Indicators
- On Friday the US stock market was marked by aggressive sell-off: #SPY (-2,32%), #DIA (-2,17%), #QQQ (-3,30%).
- The US Treasury bonds 10-year yield keeps lowering and is currently at 2.85-2.86%.
The Economic News Feed for 10.12.2018:
- GDP report (UK) – 11:30 (GMT+2:00);
- Manufacturing Industry Volume report (UK) – 11:30 (GMT+2:00);
- Job Openings and Labor Turnover Survey (US) – 17:00 (GMT+2:00).
