The US Dollar Index Closed in the Red

The US dollar weakened slightly against a basket of major currencies. Yesterday, a weak report on existing home sales was published in the US, according to which sales fell to 4.99M instead of 5.25M. The US dollar index (#DX) closed in the negative zone (-0.04). The US currency is still under pressure due to the US government shutdown, which has not already worked for 33 days.

The British pound strengthened against the US dollar despite unresolved issues concerning Brexit. Yesterday, ambiguous data on the UK labor market were published. Thus, the average earnings, including bonuses, increased by 3.4% in November, while experts expected growth of 3.3%. However, the number of jobless claims rose to 20.8K in December instead of 20.0K. Optimistic data were also published in the Eurozone: German ZEW economic sentiment index counted to -15.0 in January and turned out to be better than the forecasted value of -18.4. The New Zealand dollar strengthened against the US dollar after the publication of the consumer price index, which increased by 0.1% in Q4 instead of 0.0%.

Today, during the Asian trading session, the Japanese yen has been decreased against the US dollar. The Bank of Japan, as expected, left the interest rate unchanged at -0.10%. Also, weak economic data from Japan were published. Trade balance counted to -55B in December, while experts forecasted -30B. Exports decreased by 3.8% instead of 1.9%. The demand for safe assets has weakened.

The "black gold" prices are recovering after a strong decline the day before. At the moment, futures for the WTI crude oil are testing the mark of $53.20 per barrel. At 23:30 (GMT+2:00), the API weekly crude oil stock will be published.

Market Indicators

Yesterday, aggressive sales were observed in the US stock market: #SPY (-1.35%), #DIA (-1.23%), #QQQ (-2.00%).

The 10-year US government bonds yield is at the level of 2.73-2.74%.

- Core retail sales in Canada at 15:30 (GMT+2:00).

by JMarkets, 2019.01.23

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.