Euro Is Under Pressure. Demand for the US Dollar Is Still High

Yesterday, the US currency continued to rise relative to the basket of major currencies against the 10year US government bonds yield growth. Today, the indicator has updated local highs and reached a value of 3.12%. Also yesterday, Philadelphia Fed manufacturing index was published, which counted to 34.4 instead of the forecasted value of 21.0. The US dollar index (#DX) closed in the positive zone (+0.12%) yesterday.

Euro weakened due to the fact that Italy’s populist parties, working on a coalition program, require the European Central Bank to write off 250 billion euros of the country’s debt. Also, the President of the European Council, Donald Tusk, expressed concern about the US position in world politics. The official believes that US policy is very unpredictable not only in relation to opponents, but also to “friends”, that is, to the European Union.

The “black gold” prices have stabilized. At the moment, futures for the WTI crude oil are testing a mark of $71.60.

Market Indicators

Yesterday, the bearish sentiment was observed in the US stock market: #SPY (0.08%), #DIA (0.09%), #QQQ (0.38%).

At the moment, the 10year US government bonds yield is at the level of 3.113.12%.

At 15:30 (GMT+3:00) reports on inflation and retail sales in Canada will be published.

by JustMarkets, 2018.05.18