The Euro Is Strengthening Against the Eurozone Economic Expansion

Yesterday, the euro strengthened, while the US dollar began to decline. The US currency was under pressure due to forecasts that the growth of the global economy would exceed the US economic growth. As a result, the ECB and the Central Banks of other countries would be forced to begin the tightening of soft monetary policy. Yesterday, the ECB member Kere made a statement, that the Eurozone economy was not being restored, but expanding. The positive reports on the German coalition also supported the euro.

During yesterday’s trading session, a series of important reports on the US economy was published. The number of jobless claims fell to a record low level, but the US dollar did not react to it. The volume of construction of new houses in the US decreased sharply. Business activity in the Philadelphia region fell to its fivemonths low.

The “black gold” prices have begun to decline. At the moment, futures for the WTI crude oil are testing the price of $63.15 per barrel. We recommend you to pay attention to the monthly IEA report in the US at 11:00 (GMT+2:00).

Market Indicators

Yesterday, the main indices showed mixed results: #SPY (0.17%), #DIA (0.35%), #QQQ (+0.02%).

The 10year US government bonds yield continues to show positive dynamics. At the moment, the indicator is at the level of 2.64%.

The volume of retail sales in the UK at 11:30 (GMT+2:00);Manufacturing Sales in Canada at 15:30 (GMT+2:00);The index of consumer expectations and sentiment in the US at 17:00 (GMT+2:00).

by JustMarkets, 2018.01.19