The US Currency Moved Away from the Highs. We Expect a Report on the Labor Market in the US

The US dollar moved away from the 4month high against the basket of major currencies. Financial market participants began to fix profits after the prolonged growth of the US currency. In April, the index of business activity in the US nonmanufacturing sector slowed down slightly and counted to 56.8, although experts predicted a value of 58.1. The US dollar index (#DX) closed the trading session with a slight decrease (0.06%). At the moment, the currency majors are consolidating. Investors expect a report on the US labor market, which may have a significant impact on the dynamics of major currency pairs.

Euro rose, but then moved away from the session’s maximum after it became known that inflation in the Eurozone slowed to 1.2% (y/y) against 1.3% (y/y) in March. The British pound also weakened after the publication of the index of business activity in the services sector, which counted to 52.8, while investors expected the value of 53.5.

The “black gold” prices are consolidating after significant growth during yesterday’s trading. At the moment, futures for the WTI crude oil are testing a mark of $68.35.

Market Indicators

Yesterday, the bearish sentiment prevailed in the US stock market: #SPY (0.22%), #DIA (0.00%), #QQQ (0.01%).

At the moment, the 10year US government bonds yield is at the level of 2.932.94%.

Statistics on the US labor market at 15:30 (GMT+3:00);The index of business activity in Canada from Ivey at 17:00 (GMT+3:00).

by JustMarkets, 2018.05.04