Currency Majors Have Become Stable. We Expect Important Economic Releases

Yesterday, currency majors showed multidirectional dynamics. At the moment, the dollar index (#DX) is consolidating near monthly highs. The euro was supported by reports that Donald Trump could delay his decision on imposing tariffs on imported cars and parts by up to six months. According to Eurostat, the estimate of eurozone GDP growth in the first quarter met market expectations and counted to 0.4% (q/q).

Greenback was under pressure after a weak report on US retail sales. In April, retail sales declined by 0.2%. The core retail sales index slowed down to 0.1% compared with a forecasted value of 0.7%. Today, during the Asian trading session, ambiguous statistics on the labor market were published in Australia. At the moment, financial market participants have taken a wait-and-see attitude before the publication of important economic releases from the US. These statistics may affect the dynamics of currency majors in the short term. We also recommend following up-to-date information regarding trade negotiations between the US and China.

Oil quotes show positive dynamics. At the moment, futures for the WTI crude oil are testing $62.35 per barrel.

Market Indicators

Yesterday, the bullish sentiment was observed in the US stock market: #SPY (+0.59%), #DIA (+0.43%), #QQQ (+1.41%).

The 10-year US government bonds yield is declining. Currently, the figure is at 2.36-2.37%.

- Statistics on the real estate market in the US at 15:30 (GMT+3:00);
- Philadelphia Fed manufacturing index at 15:30 (GMT+3:00).

We also recommend paying attention to the speech by the Bank of Canada Governor.

by JMarkets, 2019.05.16

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.