The US Currency Remains Under Pressure

Yesterday, an inflation report was published in the US, according to which economic indicators improved: in January, inflation accelerated to 2.1%; the consumer price index in the US increased by 0.5% (year on year). Another report showed that retail sales in the US in January fell by 0.3%, although analysts expected growth of 0.2%. As a result, the US dollar rose, but the dollar’s growth was shortterm. The US currency returned to decline due to concerns about the growing budget deficit and the US debt. The US dollar index (#DX) closed in the negative zone (0.76%).

The Japanese yen has updated the maximum with the American currency. Today, data on the volume of industrial production was published, which showed an increase of 2.9%, although the growth of 2.7% was expected. The yen has added more than 2% this week, but Japan’s Finance Minister, Taro Aso, does not consider such a strengthening too harsh.

The “black gold” prices rose after the publication of the data that oil inventories in the US had increased less than forecasted values. At the moment, futures for the WTI crude oil are testing a mark of $61.5 per barrel.

Market Indicators

Yesterday, the major US stock indices closed the trading session in the positive zone: #SPY (+1.35%), #DIA (+1.11%), #QQQ (+1.87%).

The 10year US government bonds yield shows a positive trend. At the moment the indicator is at the level of 2.93%.

Trade balance in the Eurozone at 12:00 (GMT+2:00);The number of initial jobless claims in the US at 15:30 (GMT+2:00);The index of Philadelphia Fed manufacturing activity at 15:30 (GMT+2:00);Producer price index in the US at 15:30 (GMT+2:00).

Financial markets of China will be closed due to the holiday.

by JustMarkets, 2018.02.15