The Dollar Index Moved Away from Annual Highs. We Are Waiting for Important Economic Reports

The US dollar slightly weakened during yesterday’s trading session against the basket of major currencies. The US published weak statistics, according to which existing home sales decreased by 2.5% to 5.46M, while investors expected the value of 5.56M. In general, the demand for the US currency is still high. The US dollar index (#DX) closed in the negative zone (0.20%) yesterday.

The British pound strengthened after the publication of the report on the volume of retail sales in the UK. In April, the indicator increased by 1.6% instead of the forecasted value of 0.8%. This report showed that the UK economy is strong, despite the uncertainty concerning Brexit. Also, the Bank of England Governor Carney pointed out during his speech that the economic weakness at the beginning of this year is temporary.

The euro is under pressure due to political uncertainty and Italy’s national debt. Yesterday, the European Commission appealed to Italy to reduce its national debt level. The ECB warned the EU countries that a high debt burden may lead to excessive fiscal policy easing.

The “black gold” prices are declining. At the moment, futures for the WTI crude oil are testing a mark of $71.40.

Market Indicators

Yesterday, the bearish sentiment was observed in the US stock market: #SPY (0.20%), #DIA (0.29%), #QQQ (0.03%).

At the moment, the 10year US government bonds yield is at the level of 2.972.98%.

IFO business climate index in Germany at 11:00 (GMT+3:00);GDP data in the UK at 11:30 (GMT+3:00);Core durable goods orders in the US at 15:30 (GMT+3:00).

We also recommend paying attention to the speech of the Fed Chairman Powell.

by JustMarkets, 2018.05.25