The Dollar Index Closed in the Negative Zone. We Expect a Report on the US Labor Market

Yesterday, the US dollar slightly moved away from local highs. The dollar index (#DX) closed in the negative zone (0,17%). The United States published ambiguous economic reports. The number of initial jobless claims fell to 221 thousand, while investors expected the value of 234 thousand. In April, the index of pending sales in the real estate market counted to1.3% instead of the forecasted value of +0.4%. At the moment, the US dollar is stable against the basket of major currencies. Investors took a waitandsee attitude before the publication of a report on the US labor market, which may have a significant impact on the dynamics of currency majors.

Euro strengthened against a decline in political tension concerning Italy. Five Star and Lega parties will try to resume the government coalition. This means that repeat elections will be avoided. Euro was also supported by the consumer price index, which counted to 1.9% (yearonyear), while experts expected a value of 1.6%. However, in April, the unemployment rate in the Eurozone increased to 8.5% instead of the expected 8.4%. In the first quarter, economic growth of Canada slightly slowed down and counted to 0.3%.

The “black gold” prices are rising against a decline in oil inventories in the US. At the moment, futures for the WTI crude oil are testing a mark of $67.10 per barrel. We recommend paying attention to the Baker Hughes oil rig count at 20:00 (GMT+3:00).

Market Indicators

Yesterday, the bearish sentiment was observed in the US stock market: #SPY (0.61%), #DIA (1.02%), #QQQ (0.06%).

At the moment, the 10year US government bonds yield is at the level of 2.862.87%.

The index of business activity in the manufacturing sector in Germany and the Eurozone at 10:55 and 11:00 (GMT+3:00);The index of business activity in the manufacturing sector in the UK at 11:30 (GMT+3:00);A report on the US labor market at 15:30 (GMT+3:00);The index of business activity in the US manufacturing sector from ISM at 17:00 (GMT+3:00).

by JustMarkets, 2018.06.01