Majors Are Consolidating. Investors Expect Additional Drivers

The US dollar is moving without a clear dynamic against the basket of major currencies. Yesterday, the dollar index (#DX) closed the trading session with a slight increase (+0.18%). The United States has published ambiguous statistics. Core durable goods orders rose by 0.1% in December instead of 0.2%. Philadelphia Fed manufacturing index declined significantly in February and counted to -4.1, while investors expected growth to 15.6. Existing home sales counted to 4.94M in January and were worse than market expectations at the level of 5.01M. At the same time, the American currency was supported by the growth in the US government bonds yield to a weekly maximum.

The ECB monetary policy meeting account did not have a significant impact on the euro. Regulator considers the possibility of launching the next round of targeted longer-term refinancing operations (TLTRO) for Eurozone banks. This means a likely increase in stimulation in the Eurozone. The regulator wants to sum whether the slowdown in economic growth in the Eurozone is enough to require the launch of a new round of TLTRO.

The British pound is being traded near monthly highs against the US dollar. Yesterday, European Commission President, Jean-Claude Juncker, said that he was not optimistic about the negotiations with the UK about avoiding the “tough” Brexit. It also became known that the country would not have time before March 29, the date of Brexit, to conclude new agreements on the conditions of cooperation with many countries outside the EU, which would significantly complicate Britain’s trade relations with partners.

The "black gold" prices became stable. At the moment, futures for the WTI crude oil are testing the mark of $57.10 per barrel. At 20:00 (GMT+2:00), a report on the US Baker Hughes total rig count will be published.

Market Indicators

Yesterday, the bearish sentiment was observed in the US stock market: #SPY (-0.36%), #DIA (-0.37%), #QQQ (-0.37%).

The 10-year US government bonds yield has been growing. Currently, the indicator is at the level of 2.68-2.69%.

- German IFO business climate index at 11:00 (GMT+2:00);
- Consumer price index in the Eurozone at 12:00 (GMT+2:00);
- Statistics on retail sales in Canada at 15:30 (GMT+2:00);
- Fed monetary policy report at 18:00 (GMT+2:00).

We also recommend paying attention to the speech by the ECB President.

by JMarkets, 2019.02.22

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.