The US dollar is recovering against a basket of major currencies after a decline the day before. Investors are closely monitoring the trade relations between the US and China. Yesterday, the US President, Donald Trump, announced that he planned to meet with Chinese President, Xi Jinping, to reach a final agreement. Donald Trump expects an agreement to be reached by March. The US dollar index (#DX) closed in the positive zone (+0.29%). Today, investors’ attention is focused on a report on the US labor market for January. Economists expect that key indicators may worsen. We recommend paying attention to the difference between the actual and forecasted values.
Yesterday, economic data were published in Germany, the Eurozone, Canada and the US. Thus, the unemployment rate in Germany decreased by 2K in January, while investors expected a decrease of 11K. Eurozone GDP counted to 1.2% (y/y) in December, as the experts expected. Canada GDP fell by 0.1% in November, which matched the investors’ forecasts. New home sales in the US counted to 657K in November instead of 560K. Today, during the Asian trading session, Chinese Caixin manufacturing PMI has been published, which has counted to 48.3 and has been worse than the expected value of 49.5.
The “black gold” prices are consolidating. At the moment, futures for the WTI crude oil are testing the mark of $53.75 per barrel.
Market Indicators
- Yesterday, there was a variety of trends in the US stock market: #SPY (+0.88%), #DIA (-0.02%), #QQQ (+1.50%).
- The 10-year US government bonds yield fell again. At the moment, the indicator is at the level of 2.62-2.63%.
Economic Data on 01.02.2019:
- German manufacturing PMI at 10:55 (GMT+2:00);
- Preliminary data on inflation in the Eurozone at 12:00 (GMT+2:00);
- Data on the US labor market at 15:30 (GMT+2:00);
- ISM manufacturing PMI in the US at 17:00 (GMT+2:00).
