On Friday, the US dollar strengthened against a basket of major currencies amid optimistic data. New home sales rose to 667K in February instead of the forecasted value of 620K. Previous data has also been revised upwards from 697K to 636K. At the moment, the dollar index (#DX) is maintaining local highs. Currency majors are consolidating. This week, trade negotiations between the US and China will be in the focus of attention. Vice Premier of the People’s Republic of China, Liu He, will meet with US Trade Representative, Robert Lighthizer, and US Treasury Secretary, Steven Mnuchin, in Washington.
Investors are still focused on the uncertainty concerning Brexit. On Friday, March 29, British lawmakers rejected Prime Minister Theresa May’s deal for the third time. Financial market participants fear that they will not be able to conclude an agreement on the Brexit terms by April 12. At the same time, the European Commission is ready for such a course of events and considers non-deal Brexit to be the most probable option.
Today, during the Asian trading session, economic data from Japan and China has been published. Thus, Tankan large manufacturers index slowed down in Q1 and counted to 12 instead of 13. Tankan large non-manufacturers index also decreased to 21 instead of 22. Chinese Caixin manufacturing PMI rose to 50,8 in March, while investors expected 50.1. These statistics support the Australian dollar. German manufacturing PMI slowed down in March and counted to 44.1 instead of 44.7.
The “black gold” prices are growing. At the moment, futures for the WTI crude oil are testing the mark of $60.70 per barrel.
Market Indicators
- On Friday, the bullish sentiment was observed in the US stock market: #SPY (+0.63%), #DIA (+0.80%), #QQQ (+0.76%).
- The 10-year US government bonds yield is recovering. At the moment, the indicator is at the level of 2.43-2.44%.
The news feed on 01.04.2019:
- Consumer price index in the Eurozone at 12:00 (GMT+3:00);
- Retail sales in the US at 15:30 (GMT+3:00);
- ISM manufacturing PMI at 17:00 (GMT+3:00).
