The Dollar Index Is Consolidating. We Expect the ECB Monetary Policy Meeting Account

The US dollar rose slightly against majors. The dollar index (#DX) closed in the green zone (+0.26%). Greenback is currently consolidating. Investors expect the ECB monetary policy meeting account today. A report on the number of jobless claims in the US will be in the spotlight. It is expected that the indicator will increase by 5.25 million. The number of jobless claims, which continues to grow, is approaching 8 million, which exceeds the level of 6 million, which was noted in 2009 during the financial crisis. Financial market participants also assess the FOMC meeting minutes, which was published yesterday. So, it states that in the worst case scenario, the central bank assumes that the US economy will not recover from the losses caused by the COVID19 outbreak, until next year.

The Bank of England intends to provide a loan to the government to fight coronavirus if it fails to raise funds in the bond market quickly. The UK authorities want to increase costs and reduce taxes significantly to protect companies and employees from economic recession. Thus, the amount of planned borrowing increased by tens of billions of pounds. The regulator emphasizes that government lending is a shortterm measure and funds should be repaid by the end of the year.

The “black gold” prices are rising again. Currently, futures for the WTI crude oil are testing the $25.85 mark per barrel.

Market indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+3.36%), #DIA (+3.41%), #QQQ (+2.12%).

The 10year US government bonds yield increased slightly. At the moment, the indicator is at the level of 0.730.74%.

• UK GDP data at 09:00 (GMT+3:00);
• UK manufacturing production at 09:00 (GMT+3:00);
• ECB monetary policy meeting account at 14:30 (GMT+3:00);
• Initial jobless claims in the US at 15:30 (GMT+3:00);
• Canada’s labor market data at 15:30 (GMT+3:00).

by JustMarkets, 2020.04.09