Demand for the US Currency Is Still High

The US dollar continued to strengthen relative to the basket of major currencies against the 10year US government bonds yield growth. Yesterday, the indicator updated the local high and reached the level of 3.10%. The ambiguous statistics on the US real estate market was also published yesterday. In April, the number of issued building permits dropped by 1.8% to 1.352M. At the same time, the indicator exceeded market expectations of 1.347M. The volume of industrial production increased by 0.7%, which is higher than the forecasted value of +0.5%. The US dollar index (#DX) closed the trading session in the positive zone (+0.19%).

The British pound fell again relative to the US currency due to resumed fears concerning Brexit. The British government said that it intended to publish in June a detailed plan on the future relation between the country and the EU. However, EU officials have complained numerous times of the uncertainty in the future actions of Britain, which creates problems in the Brexit negotiations.

The “black gold” prices are rising against the decrease in crude oil inventories in the US. Futures for the WTI crude oil are testing a mark of $71.65.

Market Indicators

Yesterday, the bullish sentiment was observed in the US stock market: #SPY (+0.42%), #DIA (+0.27%), #QQQ (+0.66%).

At the moment, the 10year US government bonds yield is at the level of 3.113.12%.

Philadelphia Fed manufacturing index at 15:30 (GMT+3:00).

We also recommend paying attention to the speeches of the ECB and the FOMC representatives.

by JustMarkets, 2018.05.17