Demand for the US Dollar Remains

On Thursday, the US President Donald Trump signed a soft version of the decree on the introduction of imports duties on steel and aluminum in the US, after which the sentiment in the markets improved. The import duties on steel and aluminum were introduced at the level of 25% and 10%, respectively, but the president made an exception for Canada and Mexico, and also gave other countries possibility to receive duties exemption in the future.

On Friday, a number of reports on the US labor market were published, which showed that the country’s economy remains stable, and the dollar is in demand. However, the slowdown in salary growth has reduced the possibility of four increases in the Fed’s interest rate this year, which has led to the dollar decline. The US dollar index (#DX) slightly decreased on Friday (0.11%).

The euro is weak after ECB President Mario Draghi’s statements on Thursday. As the official said, the basic inflation remained weak, and therefore “the ECB policy will remain reactive”. Draghi pointed to the need for adaptive policies, risks decrease and the strengthening of the euro. On Friday, the Bank of Japan, as expected, kept the monetary policy unchanged. The regulator said that inflation remained below the target level, because of which financial incentives would continue.

The “black gold” prices are consolidating. Futures for the WTI crude oil are testing the mark of $62.0 per barrel.

Market Indicators

On Friday, there were aggressive purchases in the US stock market: #SPY (+1.74%), #DIA (+1.77%), #QQQ (+1.94%).

At the moment, the 10year US government bonds yield is at the level of 2.902.91%.

Important economic reports are not expected today.

by JustMarkets, 2018.03.12