On Friday, the US dollar strengthened slightly against a basket of major currencies. The dollar index (#DX) closed the trading session in the positive zone (+0.17%). The euro collapsed after the publication of weak economic data. Thus, German manufacturing PMI fell to 44.7, while experts expected 48.0. Markit composite PMI also updated the lows and counted to 51.3 instead of 52.0.
Demand for safe assets has increased significantly. The yield spread between 3-month and 10-year US bonds has been first inverted since 2007. Financial market participants are increasingly concerned about rising recession risks in the global economy. Meanwhile, the US currency was additionally supported by an optimistic report on existing home sales for February. The indicator rose to 5.51M instead of the forecasted value of 5.10M.
Investors are still focused on Brexit. It should be recalled that the EU agreed to delay Brexit until May 22, if British parliamentarians approve the agreement. If legislators do not accept the Brexit until March 29, the extension will be valid until April 12. However, it became known that the British parliamentarians wanted to hold a vote on taking Brexit in their hands, and Theresa May’s ministers intended to force her to resign. Meanwhile, anti-Brexit petition has gained almost 5 million signatures.
The “black gold” prices are falling. At the moment, futures for the WTI crude oil are testing the mark of $58.85 per barrel.
Market Indicators
- On Friday, aggressive sales were observed in the US stock market: #SPY (-1.92%), #DIA (-1.78%), #QQQ (-2.20%).
- The 10-year US government bonds yield fell significantly. At the moment, the indicator is at the level of 2.45-2.46%.
The news feed on 25.03.2019:
- German IFO business climate index at 11:00 (GMT+2:00).
