The US Currency Has Been Declining

The US dollar weakened against a basket of major currencies after the publication of ambiguous data. Thus, the ADP nonfarm employment change counted to 217K in December and was better than the forecasted value of 179K, while the previous data were revised downward from 179K to 157K. However, the initial jobless claims rose to 231K, while investors expected 220K. The ISM manufacturing PMI counted to 54.1 in December and was worse than the expected value of 57.7. The dollar index (#DX) closed yesterday in the negative zone (-0.60%).

The British pound recovered a significant part of the losses. At the same time, the UK currency is still under pressure. The economic activity index in the construction sector counted to 52.8 in December and was worse than the forecasted value of 52.9. Also, investors are closely monitoring the situation concerning Brexit. It became known that the European Union did not plan to hold new negotiations or change the agreement on the exit of Great Britain from the EU. The European Commission believes that they have proposed the best and only possible agreement on Brexit.

The "black gold" prices have been growing. At the moment, futures for the WTI crude oil are testing the mark of $47.85 per barrel. At 18:00 (GMT+2:00), a report on the US crude oil inventories will be published.

Market Indicators

Yesterday, aggressive sales were observed in the US stock market: #SPY (-2.39%), #DIA (-2.85%), #QQQ (-3.27%).

The 10-year US government bonds yield continues to show negative dynamics. Currently, the indicator is at the level of 2.57-2.58%.

- German unemployment change at 10:55 (GMT+2:00);
- The index of economic activity in the UK services sector at 11:30 (GMT+2:00);
- The consumer price index in the Eurozone at 12:00 (GMT+2:00);
- Data on the US labor market at 15:30 (GMT+2:00);
- Data on the labor market in Canada at 15:30 (GMT+2:00).

by JMarkets, 2019.01.04

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.