The US dollar is consolidating against a basket of major currencies. The dollar index (#DX) is testing local lows. Mixed economic data from the USA was published on Friday. Thus, the number of people employed in the non-farm sector grew in August by only 130K, while experts expected growth by 160K. At the same time, the average hourly wage increased in August by 0.4% instead of 0.3%. The unemployment rate was 3.7%, as experts predicted.
The Canadian dollar strengthened against the US currency amid the publication of optimistic economic data from Canada. Thus, the level of employment rose in August by 81.1K instead of the expected growth of 18.9K. The Ivey business activity index in August was 60.6, while analysts forecased a value of 55.2.
The British pound retreated from local highs. Participants in financial markets began to partially fix pound positions. The uncertainty around Brexit remains in the spotlight. The High Court of Great Britain decided to suspend the work of Parliament. Also, according to the law passed by the Parliament, British Prime Minister Boris Johnson will be required to ask the EU authorities to postpone Brexit for three months.
A key event in the current trading week will be the meeting of the European Central Bank on Thursday, September 12. Experts expect the ECB to lower the rate on deposit funds from -0.40% to -0.50%. Participants in financial markets will closely monitor the comments and rhetoric of representatives of the Central Bank. The regulator may announce the introduction of additional measures to stimulate the eurozone economy.
The “black gold” prices went up. Currently, WTI crude oil futures are testing the $57.00 per barrel mark.
Market indicators
- On Friday, the US stock markets showed mixed trends: #SPY (+0.08%), #DIA (+0.24%), #QQQ (-0.10%).
- The yield on 10-year US government bonds is at the level of 1.58-1.59%.
The news feed on 2019.09.09:
- The UK GDP data at 11:30 (GMT+3:00);
- The production in the manufacturing industry of Great Britain at 11:30 (GMT+3:00).
