The US dollar continued its growth against a basket of major currencies. The US dollar index (#DX) closed yesterday in the positive zone (+0.33%). At the same time, the yen, which is considered a protective asset, went down amid signals about coronavirus spreading slowing down. Investors believe that China has managed to contain the epidemic. China reported yesterday that the number of new infections per day was the lowest since January 29. Chinese officials earlier reported that a clear slowdown in the spread of the infection indicates the effectiveness of the measures taken, but representatives of the global health sector believe that it is still too early to judge what will happen next.
Yesterday, mixed economic data on the UK labour market was published. Thus, the average salary level including bonuses rose in December by 2.9%, while experts expected an increase of 3.0%, while the number of applications for unemployment benefits in January was only 5.5K instead of 22.6K. Weak economic releases continue to put pressure on the EUR. EUR/USD quotes have updated the three-year lows. Today, investors’ attention will be focused on the publication of FOMC Minutes.
Oil prices have gone up. At the moment, futures for WTI oil are testing the level of $52.95 per barrel.
Market indicators
- Yesterday the US stock market showed a variety of trends: #SPY (-0.26%), #DIA (-0.54%), #QQQ (+0.04%).
- The yields on 10-year US government bonds increased slightly. They are currently at 1.55-1.56%.
News background as of 19.02.2020:
- consumer price index in UK – 11:30 (GMT+2:00);
- the number of construction permits issued in the USA – 15:30 (GMT+2:00);
- manufacturer price index in the USA – 15:30 (GMT+2:00);
- the basic consumer price index in Canada – 15:30 (GMT+2:00);
- publication of FOMC Minutes – 21:00 (GMT+2:00).
