The US Dollar Has Weakened Against Major Currencies

Yesterday, the shutdown of the US government work had a negative impact on the US dollar rate, as a result, the currency weakened against other majors. The US dollar index (#DX) fell by 0.24%. The euro was supported by the news, that on Sunday the German Social Democratic Party voted for starting of official coalition negotiation with the Angela Merkel’s conservatives. At the moment, investors took a waitandsee attitude before the ECB meeting.

Today, market participants evaluate the news that Donald Trump extended the financing of the US government until February 8. Investors also follow the decision of the Bank of Japan on monetary policy. As a result of the meeting, the regulator kept its quantatative easing programs unchanged, but at the same time, it has optimistic inflationary expectations. During the Asian trading session, the Japanese yen showed moderate growth against the US dollar.

The bullish sentiment continues to prevail in the “black gold” market in expectation of the US oil inventories decline. At the moment, futures for the WTI crude oil are testing the mark of $64 per barrel.

Market Indicators

Yesterday the main indices closed in the positive zone: #SPY (+0.81%), #DIA (+0.55%), #QQQ (+1.07%).

The 10year US government bonds yield has begun to decline. At the moment, the indicator is at the level of 2.63%.

ZEW economic sentiment index in Germany and the Eurozone at 12:00 (GMT+2:00).

by JustMarkets, 2018.01.23