On Friday, there was high trading activity on the currency majors. However, a unidirectional trend was not observed. The dollar index (#DX) kept the current levels. The US published ambiguous labor market data. Thus, the number of people employed in the nonfarm sector increased to 304K in January, while experts forecasted 165K. However, previous data was revised downward from 312K to 222K. Growth in average hourly earnings slowed down from 0.4% (m/m) to 0.1% (m/m). The unemployment rate rose to 4.0% in January instead of the forecasted value of 3.9%. The ISM manufacturing PMI in the US counted to 56.6 in January and was better than the expected value of 54.2.
This week, financial market participants will closely monitor political events. On Tuesday, the US President, Donald Trump, will give an annual speech to the US Congress. The main theme of his speech will be the problem of building a wall on the border with Mexico. Also, several speeches by the Fed representatives are planned to take place. The speech by Fed Chairman, Jerome Powell, will be the key event on Wednesday, February 6.
The “black gold” prices are stable after growth the day before. At the moment, futures for the WTI crude oil are testing $55.60 per barrel.
Market Indicators
- On Friday, there was a variety of trends in the US stock market: #SPY (+0.05%), #DIA (+0.14%), #QQQ (-0.42%).
- The 10-year US government bonds yield has been growing. Currently, the indicator is at the level of 2.68-2.69%.
Economic Data on 04.02.2019:
- The index of economic activity in the UK construction sector at 11:30 (GMT+2:00).
- We also recommend following the up-to-date information regarding the trade conflict between the US and China, as well as the Brexit process.
