The US dollar retreated from local lows and started gaining strength against major currencies. The dollar index (#DX) closedin the green yesterday (+ 0.49%). Support for the US currency was provided by sudden clarity in the trade relations between the USA and China. Keep in mind that the US President D. Trump confirmed that the conclusion of the first stage of the negotiations will be held on January 15.
Mixed economic data from the US was also released yesterday. The number of initial jobless claims fell to 222K, while experts expected 225K. However, the manufacturing activity index (PMI) in the US fell in December to 52.4 instead of the forecasted value of 52.5.
Business activity indices for the manufacturing sectors of Germany and the UK were also published yesterday. The index of business activity in the manufacturing sector (PMI) in Germany amounted to 43.7 in December and was better than the predicted value of 43.4. The index of business activity in the manufacturing sector (PMI) in the UK amounted to 47.5 in December and turned out to be worse than the forecasted value of 47.6.
Prices for oil continue to rise due to tensions in the Middle East. At the moment, WTI crude oil futures are testing $62.95 per barrel. At 18:00 (GMT+2:00), a report on the crude oil inventories will be published.
Market Indicators
- The US stock market is in a bullish mood: #SPY (+0,94%), #DIA (+1,23%), #QQQ (+1,67%).
- Yields on 10-year US government bonds declined. At the moment, the indicator is at 1.83-1.84%.
The Economic News Feed for 03.01.2020:
- Change in the number of unemployed in Germany – 10:55 (GMT+2:00);
- Business activity index in the construction sector (PMI) of the UK – 11:30 (GMT+2:00);
- ISM’s business activity index in the manufacturing sector (PMI) of the USA – 17:00 (GMT+2:00).
