The US Dollar Is Falling, the Euro is Strengthening Against the Statements of Regulators

The US dollar fell last week after the statements by the European Central Bank, the Bank of Japan and the Chinese government about possible policy changes in the future. The EUR/USD currency pair reached a maximum in three years. The euro strengthening was supported by the publication of the ECB account last week, according to which officials were ready to consider the reducing of the quantitative easing program during 2018. The euro also strengthened after it became known that Angela Merkel is going to create a new government together with the social democrats.

The pound grew significantly due to the weakening of the US currency and the prospect of a soft exit of the UK from the EU. The agreement on the exit of the UK from the EU will be signed this year. This week a debate on Brexit will take place, so the market can be volatile. The yen also strengthened last week. The yen was supported by the statement of the Governor of the Bank of Japan Haruhiko Kuroda that the moderate growth of the economy in Japan continued. The official intends to adhere to a soft monetary policy.

On Friday, the “black gold” prices increased. At the moment, futures for the WTI crude oil are being traded near $64.5 per barrel.

Market Indicators

On Friday, the major US stock indices closed in the positive zone: #SPY (+0.65%), #DIA (+0.90%), #QQQ (+0.73%).

The 10year US government bonds yield has increased slightly. At the moment, the indicator is at the level of 2.55%.

The trade balance of the Eurozone at 12:00 (GMT+2:00).

The US financial markets are closed due to the Martin Luther King Day.

by JustMarkets, 2018.01.15