The Market Is Waiting for Additional Drivers

Last week, the US dollar showed a variety of trends relative to the “majors”. The demand for safe currencies (the Japanese yen and the Swiss franc) has grown significantly due to the conflict between the US and North Korea. At the same time, commodity currencies showed negative dynamics. On Friday, August 11, there were aggressive purchases on the EUR/USD currency pair. This is due to the publication of a weak report on inflation in the US. In July, the consumer price index was 0.1%. Experts expected the figure at 0.2%. It should be recalled that earlier the FOMC representative W. Dudley was concerned about the low level of inflation in the country.

In the second quarter, Japan’s economic growth was 4.0% (year on year). Market expectations were at the level of 2.5%. In July, industrial production in China increased by 6.4%, which is less than the forecasted value of 7.2%.

At the moment, prices of “black gold” are stable. Futures for the WTI crude oil are being traded near $49 per barrel.

Market Indicators

On Friday, the major US stock indices closed in the positive zone: #SPY (+0.15%), #DIA (+0.05%), #QQQ (+0.76%).

The 10year US government bonds yield has recovered slightly after a sharp decline last week. At the moment the indicator is at the level of 2.21%.

The dollar index (#DX) finished the trading session in the negative zone (0.36%).

The economic calendar on 2017.08.14:

Today, the publication of important economic reports from the Eurozone and the US is not planned.

by JustMarkets, 2017.08.14