The Dollar Index Has Been Declining

Yesterday, the US dollar continued to lose ground relative to currency majors. The dollar index (#DX) moved away from the local highs and closed the trading session in the negative zone (0.25%). The US published weak data on inflation, which put pressure on the American currency. In August, the core consumer price index slowed down from 0.2% to 0.1%. At the moment, investors expect a report on retail sales in the US.

The Bank of England and the ECB, as expected, kept all the main parameters of the monetary policy. The central bank of the UK expects a slowdown in inflation next year. The regulator plans to adhere to a gradual increase in the interest rates taking into account market conditions. The ECB lowered the forecast for GDP growth in the Eurozone for 2018 and 2019 to 2.0% and 1.9%, respectively. The head of the Central Bank is concerned about the risks related to the trade conflict and the unstable situation in the markets of developing countries. The regulator plans to adhere to the current rate of monetary policy.

The “black gold” prices are consolidating. At the moment, futures for the WTI crude oil are testing a mark of $69.00 per barrel.

Market Indicators

Yesterday, the major US stock indices closed in the positive zone: #SPY (+0.59%), #DIA (+0.59%), #QQQ (+1.07%).

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

At 15:30 (GMT+3:00) a report on retail sales will be published in the United States.

We also recommend paying attention to the speech by the Bank of England governor Carney at 13:00 (GMT+3:00).

by JustMarkets, 2018.09.14