The US dollar is being traded without a clear dynamic after the release of the FOMC minutes. The FOMC minutes for March showed that the Fed would not adjust policy and planned to keep the key marks of monetary policy until the end of this year. However, some officials said they could change their views on the key interest rate. Although politicians noted that the US labor market looked strong, some of them said that the “deterioration” in the US economy could be intensified due to the large debt of American companies. They also noted a continuing weakness in the housing market. Yesterday, the dollar index (#DX) closed with a small minus (-0.05%).
Meanwhile, the US currency was supported by the news that the US and China were striving for progress in the negotiations on a possible trade agreement between the countries.
In particular, the Treasury Secretary Steven Mnuchin said that the parties agreed on a mechanism that would ensure the implementation and compliance of the trade agreement. The US claim China to implement significant reforms to end the theft of US intellectual property. Washington also wants Beijing to limit industrial subsidies, expand its markets for US companies and significantly increase purchases of US agricultural, energy and industrial products.
Financial market participants assess the results of the ECB meeting. So, the Central Bank left the key interest rates unchanged, as experts expected. The regulator announced it intended to keep interest rates at current levels until the end of 2019. The head of the Central Bank, Mario Draghi, is concerned about the growing risks in the Eurozone economy. The ECB will continue to reinvest the proceeds from the bonds purchased as part of the quantitative easing program to the fullest extent during the additional period after it starts raising interest rates.
The European Council agreed yesterday for a further extension of the Brexit deadline. The European Union extended the exit deadline until October 31, 2019. German Chancellor Angela Merkel insisted that the UK should not be expelled and leave the block without an agreement. The British pound was supported additionally by positive economic releases from the UK.
The “black gold” prices have become stable. Oil quotes are consolidating near annual highs. At the moment, futures for the WTI crude oil are testing the mark of $64.00 per barrel.
Market Indicators
- Yesterday, the bullish sentiment was observed in the US stock market: #SPY (+0.34%), #DIA (+0.03%), #QQQ (+0.54%).
- The 10-year US government bonds yield fell slightly. Currently, the figure is at the level of 2.48-2.49%.
The news feed for 2019.04.11:
- Initial jobless claims at 15:30 (GMT+3:00);
- Producer price index in the US at 15:30 (GMT+3:00).
