Trading Activity Has Declined on the Eve of Holidays. We Expect Important Economic Reports

The US dollar is moving without a clear dynamic. Yesterday, the dollar index (#DX) closed the trading session at previous levels (+0.01%). Volatility on currency majors has dropped significantly on the eve of holidays. Financial market participants expect the publication of important statistics from the Eurozone, UK, US and Canada. These economic releases may have quite a strong influence on the dynamics of currency majors in the short term.

Market participants also assess signs of progress in the USChina trade negotiations. As it became known, Washington and Beijing set a preliminary date for a new round of negotiations expecting the possible signing of an agreement in late May or early June.

Yesterday, reports on inflation were published in the UK, Eurozone and Canada. Thus, the UK consumer price index counted to 1.9% (y/y) in March, while experts expected the figure at 2.0%. The consumer price index in the Eurozone counted to 1.4% (y/y) in March, as the experts forecasted. The core consumer price index in Canada slowed down from 0.7% (m/m) to 0.3% (m/m).

The demand for the Australian dollar rose after the publication of optimistic statistics. So, today, during the Asian trading session, data on employment change have been published in Australia, according to which the number of people employed increased by 25.7K in March, while experts forecasted growth by 12.0K.

The British pound is still under pressure due to the uncertainty concerning Brexit. Economists at Reuters believe that the chances of Brexit cancellation are more likely than the UK leaving the EU without a deal.

The “black gold” prices have been declining. At the moment, futures for the WTI crude oil are testing the mark of $63.50 per barrel. At 20:00 (GMT+3:00) a report on the US Baker Hughes oil rig count will be published.

Market Indicators

Yesterday, there was a variety of trends in the US stock market: #SPY (0.24%), #DIA (+0.00%), #QQQ (+0.35%).

The 10year US government bonds yield is decreasing. Currently, the indicator is at the level of 2.552.56%.

German manufacturing PMI at 10:30 (GMT+3:00);A number of indices of economic activity in the Eurozone at 11:00 (GMT+3:00);Statistics on retail sales in the UK at 11:30 (GMT+3:00);Philadelphia Fed manufacturing index at 15:30 (GMT+3:00);Report on retail sales in the United States at 15:30 (GMT+3:00);Core retail sales in Canada at 15:30 (GMT+3:00).

by JustMarkets, 2019.04.18