The US dollar is recovering losses against currency majors. It should be recalled that the US currency was under pressure after the Fed comments. The regulator reported it would not consider interest rates rise in the current year. Optimistic economic data support the US dollar. Thus, the number of initial jobless claims dropped to 221K, while experts expected 226K. Philadelphia Fed manufacturing index rose to 13.7 instead of the forecasted value of 4.6. The dollar index (#DX) closed the trading session in the positive zone (+0.67%).
Financial market participants continue to assess the situation concerning trade negotiations between Washington and Beijing. Mnuchin and Lighthizer will go to China for a new round of talks next week. However, the conclusion of a deal is still far away, as US President Donald Trump expects China to increase imports of American goods.
The British pound weakened significantly against the US dollar due to the controversy concerning Brexit. Yesterday, a summit of 27 EU countries was held, on which the leaders of the countries decided on the UK exit. Thus, the leaders of the countries gave the British Prime Minister Theresa May a two-week reprieve until April 12. During this time, she should either convince parliamentarians to vote for the Brexit agreement offered earlier, or present a new agreement, or choose the option to exit without a deal with Brussels. The EU wants Britain to exit the union before May 23 – the date of the election to the European Parliament. If the exit doesn’t take place, it will have to be held before June 30, i.e., before the convening of the new EU Parliament.
Meanwhile, the situation is heating up since it seems that the residents of the UK want to stay in the block. More than a million people have signed a petition on the website of the British Parliament, calling on the government to withdraw Brexit notification.
The “black gold” prices have moved away from annual highs. At the moment, futures for the WTI crude oil are testing the mark of $59.60 per barrel.
Market Indicators
- Yesterday, the bullish sentiment was observed in the US stock market: #SPY (+1.13%), #DIA (+0.89%), #QQQ (+1.56%).
- The 10-year US government bonds yield is at the level of 2.50-2.51%.
The news feed on 22.03.2019:
- German manufacturing PMI at 10:30 (GMT+2:00);
- A number of indices of economic activity in the Eurozone at 11:00 (GMT+2:00);
- Reports on inflation and retail sales in Canada at 14:30 (GMT+2:00);
- Statistics on economic activity in the US at 15:45 (GMT+2:00);
- Existing home sales in the US at 16:00 (GMT+2:00).
