The US Dollar Continues to Recover

Yesterday, the US currency strengthened relative to other majors against the recovery of stock markets after a sharp fall. Let us recall that the collapse in stock markets occurred after the publication of report on employment in the US on Friday, which was perceived as a sign of the possible acceleration of the Fed interest rate increase this year. The US dollar index (#DX) closed in the positive zone (+0.12%).

Yesterday, two weak reports on the labor market and the trading field were published in the US. The US Labor Department reported that the number of job openings in the labor market in December fell to 5.81 instead of the forecasted value of 5.96 million. The trade deficit rose to $ 53.1 billion in December from $ 50.4 billion in November due to the import decrease.

High volatility is expected on the GBP/USD currency pair next 2 days. There will be a meeting of Prime Minister Theresa May’s War Cabinet, where the trading terms after the Brexit will be discussed. Investors will follow any important news, especially regarding the customs union.

The “black gold” prices are growing against a decline in the US crude oil inventories, according to the American Petroleum Institute. Futures for the WTI crude oil are testing $63.80 per barrel. Today at 17:30 (GMT+2:00) a report on the US crude oil inventories will be published.

Market Indicators

Yesterday, bullish sentiment was observed in the US stock market: #SPY (+1.97%), #DIA (+2.34%), #QQQ (+2.65%).

The 10year US government bonds yield is at the level of 2.77%.

German industrial production at 09:00 (GMT+2:00);The interest rate decision in New Zealand at 22:00 (GMT+2:00).

by JustMarkets, 2018.02.07